Is it worth it to refinance my mortgage?
Is refinancing right now really worth it?
So, you think refinancing your mortgage will be more trouble than it’s worth? You think it will take a lot of time to round up a ton of paperwork? You think you will have to shell out lots in fees to get it done? If you’ve answered ‘yes’ to any of these questions, then you might find yourself sitting on the sidelines during this period of record low rates, and you could be passing up a huge opportunity to lower your monthly payment.
Is refinancing right now really worth it? For most homeowners, the answer is YES, thanks to today’s record low rates. Mortgage rates are near their lowest levels in years, recently hitting a 24-month low. Some experts expect rates to rise again this spring or summer, so the window to lock in these very low rates is narrow.
Does refinancing make sense for me?
It is important to shop around when refinancing, just as you did with your original mortgage, and ask your lender to put their offer in writing to help ensure you can compare ‘apples to apples.’ Your lender can help you do the math to see just how much you would save each month. Be sure to factor in the fees and closing costs associated with refinancing, and ask your lender if they are offering a no-closing cost refinance, or if they are able to provide closing cost credits to help you lower the cost of refinancing.
Don’t get hung-up on a fraction of a fraction!
As was the case with your original mortgage, it is very important that you find a lender you can trust and that your lender walks you through the process every step of the way. Don’t mistake the lowest rate to mean you’re in the best hands. More often, the best lenders are the ones who make the process simple and straightforward for you, while offering a competitively low rate. Take to Zillow to find a 5-star rated lender and read mortgage lender reviews to ensure that you are in good hands.
Not only does refinancing lower your monthly payment, it also allows you to change the terms of your loan, another way to save money! You don’t have to be stuck with the 15-year fixed rate mortgage or ARM you originally thought would be the best fit for your family. Your lender can help you determine the right type of loan for you.
Lastly, consider this – in 2014, the average New America Financial client saved $250 a month by refinancing their mortgage to a lower rate. Rates are even lower today, so what are you waiting for? You can request a personalized rate quote here in seconds!