Knowing When to Refinance

As mortgage interest rates have remained very low for the past year, home owners are wondering if now is the right time to refinance. Rates are unlikely to get much lower than they are now, so if you want to lock in a low fixed interest rate for the duration of your mortgage, now is probably the right time. However, consider a couple of other factors as you decide whether refinancing is right for you.

What Will Refinancing Cost?

Refinancing includes several costs charged to the home owners, including the application fee, getting the property appraised, and performing title checks. The costs for these services can add up, plus you have a loan origination fee. The best way to learn the cost is to contact a lender like Avis Lending and get a good faith estimate of closing costs on home loans.

How Long Will it Take to Recoup the Cost?

Once you know the cost, divide it by the monthly savings on your mortgage payments to find out how long it will take for you to break even. If you’re planning to keep your mortgage at least that long, refinancing is probably a good choice for you.

If you think now is the right time and you’re interested in getting quotes for home loans, contact Avis Lending today. We make refinancing a breeze for you!

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