A drop in rates is the typical green light for homeowners when it comes to home refinancing. But did you know you can still improve your financial situation when rates are rising? You’ll enjoy a number of benefits from refinancing, including:
- Saving money overall
- More quickly establishing equity and paying off your balance
- Paying off existing debt
- Replacing an adjustable-rate mortgage with a fixed-rate loan
The question is: is now the right time for you to refinance? Remember, there are costs involved in home refinancing, so sometimes getting a lower interest rate really doesn’t help you.
What is the cost to refinance?
Here are some factors that go into the expense:
- Closing costs – will vary based on your rate
- Title insurance
- Attorney’s fees
- Appraisal, taxes, and transfer fees
How much do you really stand to save when you consider that mortgage closing costs may total thousands of dollars? Sometimes you can roll closing costs into the loan balance, but then you’re paying interest on that money.
Find a Lender You Can Trust
Golden Oak Lending has a proven record of helping homeowners with this very decision. We are happy to assist you in reviewing all of the calculations that impact what refinancing can mean for you and answering your questions to your satisfaction.
Golden Oak Lending suggests that you consider a few key factors:
- What is your current financial situation?
- What loans are you eligible for?
- How long do you plan to stay in your current home?
- Have you calculated your break-even point and does it make sense based on how long you plan to stay in your home? The break-even point is the time it will take for the home refinancing to pay for itself. So, if you’re not planning on moving any time soon, it probably pays to do home refinancing, all other things considered.
- How does the loan you’re considering tie in with your long-term financial goals?
In summary, after careful consideration of several key factors, you should have a good idea if it’s time to refinance your home.
Contact Golden Oak Lending today to bend our ear, get another pair of eyes on your calculations and get a free mortgage check-up. By turning to a partner you can trust, you’ll be that much closer to reaching your long-term financial goals.