Time to Refinance Your Mortgage?
We've heard a lot about interest rates declining - is this a good time to refinance your mortgage? After talking to our Refinance Specialists, this is what I learned:
- Lowering your interest rate is the most common reason to refinance. Lowering the amount of interest you're charged can have a dramatic effect on your monthly payment, which in turn can save you a lot of money over the life of your loan.
- Eliminating Private Mortgage Insurance (PMI) is a great reason to refinance. If you've built enough equity in your home, waiving PMI payments allows more of your payment to go toward your mortgage principle. Likewise, if your credit score has improved, a refinance might allow you to lower your payment.
- Accessing money for a variety of uses, like loan consolidation or to pay for home improvements, motivates some to refinance. If you're considering a refinance for this reason, be sure to talk to your lender to determine if this is your best alternative.
- Shortening your loan term is also a common reason for refinancing. Normally achieved by switching from a 30-year to a 15-year mortgage, you can often take advantage of a lower rate to prevent a large increase in your monthly payment.
The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.