Homeowners Should You Refinance Your Home? Homeowners Should You Refinance? Homeowners are you considering refinancing your home? There are reasons to refinance and reasons not to refinance.
There are several reasons to refinance
- reduce monthly mortgage payments
- reduce mortgage interest rate
- consolidating a first and second mortgage
- converting from adjustable to fixed mortgage rate
- consolidate debts
- home remodeling or repair
- pull-out cash
Homeowners considering refinancing is a decision only the homeowners can make. June 2015 the interest rates were around 04%. Mortgage rates are low. There are things to consider before refinancing.
Before refinancing consider to refinance and reasons not to refinance:
- Terms on your existing loan(s)?
- Convert from adjustable rate to fixed rate mortgage.
- Consolidate mortgages (example consolidating first and second liens)
- Reminding years on your existing loan?
- If existing loan 10 year or less remaining years and new loan 15-30 years. Does it make sense to refinance?
- Cost of the refinance? What are to total fees for the new loan (points, appraisal, closing costs, etc)?
- Considering lenders fees (closing costs) is the rate of returns after refinance beneficial?
- Compare your existing interest rate to current market rates?
- How long do you plan to own your current property? Selling in 3 years why refinance for 15 to 30 years?
- If you are considering selling your home in next few years does it make sense to refinance NOW?
- Is the value of your property increasing or decreasing? Is the equity in your home enough for a refinance?
- Is there enough home equity for you to be able to refinance the existing home?
- Do you have the available cash necessary for the refinance?
- To get rid of Private Mortgage Insurance (PMI).
- Lower mortgage interest rate should reflect substantial lower monthly payments
- To consolidate debts.
- Convert from an adjustable rate loan to a fixed rate loan.
- Convert from an 30 year loan to a 15 year loan.
- Raise funds for expenses, to purchase another property, or transfer to an savings account.
- Home improvement. Will home improvements increase the value of home.
- Make necessary deferred maintenance on property.