As far as rates are concerned, now is a good time to refinance, but is it a good time for you?
A homeowner tends to refinance in order to lower their interest rate, switch from an adjustable rate to a fixed one or remove the need for mortgage insurance. Some homeowners wish to refinance in order to extend their current mortgage to a new 30-year loan in order to reduce monthly payments. Others choose to take equity out of their homes for improvements, loan consolidations, or cash in hand. If you’re considering a refinance, what do you hope to accomplish?
It is important to remember that a refinance is just a restructuring of the mortgage debt that you already have. Plus, there will be some costs involved, including title fees, local taxes and other closing costs. You’ll also need to take a close look at the terms of your current mortgage to ensure that there are no prepayment penalties.
As always, the Liberty Mortgage team is here to answer any questions you may have about refinancing your current mortgage and guide you through the process. Together, we can help you evaluate your situation to determine whether refinancing is the best choice for you.