Pros and Cons of Refinancing Right Now
/Dan Hubrich of Mountain View Mortgage is back and this month discuss the pros and cons of refinancing your mortgage while we have super low interest rates.
This month I’d like to talk a little about refinancing and give you some pointers you’ll want to consider if it’s been on your radar. Right now interest rates are at record lows and a lot of people are taking advantage of them. Some lenders will say “If rates are THIS much lower than your current rate, then you should refinance”. I don’t like to do that though because everyone’s situation is different. For example…if you are planning on selling your home within the next year then a refinance is probably a terrible idea. You wouldn’t have enough time to recoup the costs of refinancing in such a short period of time. Because of that I like to look at each situation individually. In some situations, it might actually make sense to refinance even if your rate doesn’t go down at all. If you’re doing a cash out refinance and paying off higher rate credit cards, student loans, and auto loans for example or doing home improvements to increase the value of your home then it can still make a lot of financial sense to do something. Here’s the bottom line though. Rates have come down considerably this year due to Covid-19 which has provided a huge opportunity for home owners. A $300,000 loan at current rates would be about $150/month lower compared to this same time last year and $250/month lower than they were 2 years ago. Give me a call if you’d like me to look at your situation and I’ll always give you honest feedback and advice! Thanks so much!