There are three questions that you need to ask yourself before you decide to refinance your mortgage:
1. How long will it take to get your money back? If you don’t know how long you’ll be in your home, there are zero-cost options in our marketplace. If you do know that you will be in the home for a while, it probably makes sense to pay a little extra to have a lower interest rate.
2. Are you working with the right professional? Will they be able to find the product that best suits your needs? There are all kinds of products out there, and it’s important for your wealth-building that you get the right product for your needs.
3. Is there a rule of thumb about when to refinance? Those of you with a mortgage balance over $500,000 are going to be looking at a rate reduction of ⅜ of a point to ½ a point before it really makes sense to refinance. For those of you with a balance of less than 0.5%, we’re probably going to target at least another 0.5% or 0.75% before it makes sense for you to go through the effort of refinancing.
Every scenario is different, so if you have any questions or need advice, don’t hesitate to reach out via phone or email today. I look forward to hearing from you.