How To Know If You Should Refinance Your Mortgage

How do you know if you should refinance your mortgage? If you think that the refinance wave has passed you by, think again. Mortgage rates are only slightly higher now than the bottomed-out low rates we saw a few years ago.

If you didn’t refinance then, don’t assume you missed out. There are plenty of reasons to refinance your mortgage. Read on to see if any of these reasons strike a chord with you.

I want the lowest possible payment.

There are a lot of good reasons to want to make your mortgage payment as low as possible, such as making room in your budget for other expenses or to save more. If you have a growing family, refinancing now into a lower payment will help you manage unexpected expenses as they come along.

Since your payment is (mostly) a function of the loan amount, interest rate and loan term, refinancing your mortgage into the lowest rate with the longest term will help you keep your payment as low as possible.

I want to pay off my loan faster.

Refinancing can move your loan term from 30 years to 15 years. This is the best way to shorten your term, rather than paying a little extra towards principal each month (or sporadically). Fifteen-year mortgage rates are still very low.

I want to save on interest charges.

Refinancing can lower your interest rate, which means you will pay less in interest over the life of your loan. The monthly savings may not feel like a lot, but over time you could save tens of thousands of dollars in interest. Plus, more of your payment will be applied to principal, helping you pay off your loan sooner.

I need peace of mind that my payment won’t change.

If an adjustable rate mortgage is keeping you up at night, refinancing into a fixed-rate loan can give you peace of mind that your principal and interest payment will not change over the life of the loan. Keep in mind that your payment may still adjust if your taxes and insurance are built into your payment (which they typically are).

If any of these reasons have you thinking about refinancing, please call me at 954-501-1070 for a no obligation meeting. I’ll be happy to review your current mortgage situation and present you with refinancing options to save on interest charges, lower your payment, or shorten your term. You never know what you might save!

We Florida Financial is an Equal Housing Opportunity lender.