A lot of you are asking if is it a good time to refinance my mortgage? Is refinancing a good idea right now? Ever look up the word “refinance” Chances are, at some point in your life, you probably did. You may have just looked it out out of sheer curiosity. Or, maybe you need to make those payments lower. Refinance sounds like a scary word, but it doesn’t have to be.
If you search online for this word – there are probably a billion websites that can take you in all different directions. But is it a good time to refinance in this market? One of the best things you can do is check out your options with a mortgage broker or bank. If you aren’t really sure which direction to head in, a real estate agent can help to point you.
So what is refinancing? Refinancing means that you want to replace your current mortgage rate with a new one – normally one with a lower interest rate. It can also allow you to save money on the interest over the life of your loan, pay off your mortgage sooner, and even draw from your home’s equity if you need cash for any reason. So it boils down to whether is it a good time to refinance right now.
You may have a different lender from before, and you’ll have a new interest rate and terms. One drawback though is if you’ve been making payments for a long time. If you have a 30-year mortgage and have been making payments for 25 years – you’re going to start over again. You will have 30 years’ worth of payments all over again.
Of course, just like anything in life, there are good reasons and bad reasons to refinance. If you need to discuss your options and want to know whether is it a good time to refinance or not, remember that I am always here for you!
