Mortgage refinancing can be a powerful financial tool, but it’s not the right choice for everyone. Before making a decision, consider your financial goals, current mortgage terms, and market conditions.
Interest Rates Have Dropped
Even a 0.5% to 1% decrease in your interest rate can result in significant savings over time. Lower rates mean lower monthly payments and reduced total interest costs.
Your Credit Score Has Improved
If your credit score has increased since you took out your original mortgage, you may qualify for better loan terms and lower interest rates.
You Want to Lower Your Monthly Payments
Refinancing to a lower rate or extending your loan term can reduce your monthly mortgage payment, freeing up cash for other expenses.
You Want to Pay Off Your Mortgage Faster
Switching from a 30-year to a 15-year loan allows you to pay off your home sooner and save on interest, but it may come with a higher monthly payment.
