When Should You Refinance?
Rates are low low low — so when should you consider refinancing your mortgage? Here are a few signs it may be a good idea to shop around:
You think you can lower your rate by ½ to ¾ percentage points or more.
You’d like to do some major home renovations but you need your home equity to do so.
You want to shorten your mortgage term (to pay your home off faster) or extend it out (to lower your monthly payment).
You love your house, your neighborhood, and your kid’s school — and you’ve got no plans to move.
Your job is secure (so far as you can tell), and you’re not looking to change jobs.
You’ve looked at your estimated closing costs and calculated the break-even point (where your savings from a lower interest rate exceed your closing costs). Everything looks A-OK!