- MacAsh Home Loans
There are many benefits to refinancing, such as getting a lower interest rate, reducing your monthly payment, or getting some money for a home improvement project. If you’ve been considering making a move but wonder when might be the best time to refinance your mortgage, we have some tips to help you with your decision-making.
What’s Your Goal?
The optimal time to refinance depends on what you’re trying to accomplish. For example, is your monthly budget too tight for comfort? Or do you want to do that kitchen remodel you’ve always wanted? Here are some of the reasons you might consider refinancing your home, and the best time to do it.
I Want a Lower Interest Rate
If interest rates have fallen and there’s the possibility of reducing yours by at least 2 percent, then refinancing is a great move. It’ll save you money both in the short and long term.
I Want to Pay off My Mortgage Sooner
Falling interest rates apply here as well. A lower interest rate of 2 percent or more, perhaps combined with a shortened loan term, can help you pay off your loan earlier. This is an excellent option if you’re looking ahead to the future because refinancing may help you retire more comfortably.
I Want to Change My Terms
It’s best to wait for low interest rates to change your terms. For example, let’s say you have an ARM (adjustable rate mortgage), and you’d rather have a fixed-rate mortgage to keep your monthly payment the same. It’s best to do this when interest rates drop so you don’t lock in a higher one.
I Want to Consolidate My Debt
The best time to do this is when you can get enough money from refinancing to cover all of your debts, not just a portion of them. That way, you’ll be consolidating to a single monthly payment.
I Want to Get Some Cash
If you have a big project in mind or have another reason for wanting some cash, such as funding an investment, it’s best to refinance when you can get enough to cover the expense, and then some. You’ll want to be prepared in the event of unexpected expenses that may arise.
Ready to Refinance?
Think you are ready to refinance your mortgage and reap the benefits? We can help! Start here by answering a few basic questions, and we’ll be happy to get the ball rolling.