We all love saving money right! For most of us, the biggest monthly expense we have is our house mortgage payment. With interest rates at historic lows, you may be asking yourself…. Is it a good time to refinance? Depending on when you purchased your home and how large your loan balance is you could be saving hundreds of dollars a month! Let’s talk about your options and how refinancing could help you.
A general rule of thumb for refinancing is that you need to move the interest rate a ½ or a full 1 percentage point lower for it to make sense. This can vary based on your loan amount though. There is a cost to refinance and you need to make it worthwhile for the effort.
By refinancing your home you could move the rate lower and pay less per month. With this, you can either keep your current loan term and balance or extend it back out to a 30-year mortgage. This can lower your payment significantly if you have owned your home for a number of years. Additionally, if your home is worth a lot more than your loan balance you could pull money out. With that extra money, you could pay down other debts with higher interest rates. This is a great debt consolidation strategy if you have high credit card bills, car payments or personal loans. Take advantage of the benefits of owning a home by leveraging your personal residence’s value to save money!
The current interest rates for owner-occupied homes are at all-time lows and this may not last forever. Reach out to me for a recommendation on a lender that can help you with the process. I would be happy to point you in the right direction!