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 difference 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. However, refinancing a mortgage is similar to when you initially applied for your loan. You must have a relatively good credit score and pay closing costs and fees. So you need to be sure that refinancing will be worthwhile and do plenty of research on your options. 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. Heather Bomar and her team look at all of this through a cost-benefit analysis to make sure refinancing meets your current needs and future goals.
Is refinancing right for you? Contact our team to find out!