When is a Good Time to Refinance?

When you are thinking about refinancing your home loan, you need to take a moment to determine if it is a good time to try getting a new loan. Although the market conditions can make it seem ideal to refinance, the best time is always about your current financial situation.

The first consideration is the amount you will save if you refinance. In most cases, you should not refinance a home loan unless you are saving at least one percent in interest. Otherwise, the closing costs on your new loan will make it too expensive to be worth the minor amount of savings.

After looking at the interest rate, you should also consider the terms of the loan. If your current loan is almost repaid, then it might not be logical to get a new loan. On the other hand, if you want to set up a 15 year mortgage, it may cut back on the years you are repaying the loan.

The best way to determine if you are ready to consider refinancing is by talking to a professional about your specific situation. To learn more about refinancing in California, contact Avis Lending.

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