The majority of mortgage loan applications over the past several years have been for refinancing due to historically low interest rates. People refinance for a variety of reasons including changing from an adjustable-rate to a fixed-rate mortgage, shortening or lengthening the term of the loan, home renovations, getting a loan with better terms and debt consolidation.
While refinancing could make a significant different in the amount you pay each month there are other costs you should consider. Plus, your finance charges may be higher over the life of the loan. Refinancing can make a significant difference in the amount you pay each month. However, refinancing a mortgage is similar to when you applied for your loan initially. You must have a relatively good credit score, pay closing costs and fees, and may even have a cursory home inspection. So you need to be sure that it will really be worthwhile and do plenty of research. Focus on long-term costs and benefits based on the equity in your home, the terms of the new and existing loans, and the break-even point at which you will recover your costs.
If you plan to remain in your home past the break-even point, refinancing may make sense. If Ascent handled your original mortgage, we can often help you refinance it more efficiently, saving you time and money while continuing our long-standing tradition of on-time closings and high‐trust customer service.