With mortgage refinance rates decreasing again, is this a good time to refinance your home loan? The best answer to that question is - it depends.
Consider your unique situation.
Your particular situation isn’t like anyone else’s. Whether you’d be wise to refinance depends on your current mortgage rate, the best refinance rate you can receive, and what it will cost to refinance your loan. Lenders typically charge fees for originating the refinance, checking your credit worthiness, appraising your property, escrow and title fees.
How much could you save?
For example, let’s say your current mortgage rate is 5.5%, and the best refinance rate you’ve been offered is 3.78%. On a $200,000 loan, the difference in your monthly payment for Principal and Interest would be:
P+I at 5.5%: $1135.57
P+I at 3.78%: $929.86
If you have a good credit score, lenders may compete to offer you better rates. But you’ll still need to consider what it will cost in fees to refinance, and decide if it’s worth it to you.
Could you get cash back?
Another benefit of refinancing is to get cash out of your loan. Could you get enough cash back to remodel your kitchen, for example? That could increase your home’s value when you sell it, plus provide enjoyment to you in the meantime.
To discuss your refinance options, contact Steve at Nation’s Lending at 520-612-0479, or stop in at 210 W. Continental Road, Suite 116A, Green Valley AZ 85622.
Corp NMLS # 32416