Should I refinance now or wait?

A lot of different factors go into answering this question, such as your current situation or where current mortgage rates are at the time.  Rates, by and large, are at historic low levels.  Could they go up? Of course, so if you have a higher rate of interest than what is available it might be time to pull the trigger.  Although, it is important for us to discuss what actual savings you will receive opposed to the cost of refinancing as it doesn’t always make sense.

Another reason to do it now may be that you currently have mortgage insurance and the value of your home is to a point where your loan balance is near the 80% loan to value mark.  Refinancing now would be a great way to eliminate that hefty mortgage insurance payment.  Many people also look at their financial situation as a whole to determine if refinancing could be a benefit. I have worked with numerous clients who have found better ways to grow their money and by refinancing it can either; free up some additional cash to invest monthly or it can allow you to pull out a larger portion of money at one time for a particular investment.  The best way to think about this type of benefit would be if you have a vehicle for your money that can provide a 6% return and you refinance at 3.5% interest rate then the the net of 2.5% becomes the net return on your money.

All that being said, every situation is different and if you work with a lender with your best, long term interest in mind it can be easy to determine if now is the time.  Feel free to contact me  with some basic information and I would be happy to discuss with you if it’s the right time to make the move.

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