When Is The Best Time To Refinance?

When Is The Best Time To Refinance?Determining The Right Time To Refinance

As mortgage interest rates have remained historically low (though they are projected to rise to five percent by the end of the year) and home prices have appreciated, many have been attracted by the idea of refinancing their mortgages. Undertaking the refinancing process is work and can be expensive due to closing costs, so you should educate yourself before embarking on the journey. To help you decide whether or not you should refinance, ask yourself these questions.

  • What Are Your Goals? Take time to discern what your goal is in refinancing. Are you trying to lower your interest rate? Consolidate your debt? Shorten the term of your loan? Understanding what you hope to achieve will help you determine if refinancing now or later would best serve you.
  • How Long Will You Be In The Home? If you do not plan to be in the home for at least a few years, there is no point in refinancing. Do the calculations to determine how long it will take you to recoup the costs of closing based on how much you will be saving. In many cases it could take a couple of years, so refinancing is best when you will have the mortgage for the long term.
  • Have You Refinanced Before? Do not let the enticing savings of refinancing lead you to wrack up expensive closing costs. In an ideal situation, you should only refinance your mortgage once. This will allow you to adjust your loan to better reflect your current financial situation but will not result in you throwing money away on closing costs.

You do not have to struggle blindly through your decision about refinancing. To get the professional guidance you need to make the right decision for your family, contact Avis Lending in Irvine, California and Lahaina, Hawaii. We are here to answer all of your West Coast mortgage questions. Call us today!

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