There is an old saying that if you can save 1% off your rate or $100 per month, it’s worth the refinance.
But there is a lot to consider when thinking of refinancing.
First off, your home is an asset and depending on your long term plans with the home, it can be used to for a number of things for the betterment of your lifestyle.
Refinancing to remove consumer debt is the most common and effective refinance. With interest rates at an all-time low, paying off debts that carry higher rates such as cars, credit cars, and toys can show significant savings instantly to your monthly budget.
Home improvement is always a good idea for both retaining the home and/or getting it ready to sell in the near future. A new roof and flooring can add more value to the home when listing it for sale than without.
Refinancing a mortgage to remove mortgage insurance is another great way to save money. In most cases, first-time homebuyers and others that purchase a home with less than 20% down are required to carry mortgage insurance. This is an insurance that protects the lender from the borrower if ever defaulting on the loan. If the borrower went with an FHA loan which the MI is on for the life of the loan or conventional purchase where the MI falls off at year 11, refinance is a great way to remove this if market values have increased, allowing the home to have 20% equity.
Ask for a free mortgage review to see what savings you might be approved for. Whether it’s MI removal, home improvement, debt consolidation or simply a rate drop, we can assist you in the perfect refinance to suit your needs.