Is it time to refinance?
  With mortgage rates at or near all-time lows, homeowners are thinking of refinancing. A lower rate means a lower monthly payment, right?Refinancing decisions are never that simple. Sometimes refinancing is a smart choice, sometimes not. I can help connect you with someone who will look at the numbers and help you to make the best decision. Here are just a few considerations, and why you should consult with the right professional before moving ahead: How long do you plan to stay in your home? Often a refi at a lower mortgage rate, while lowering your monthly payment, will increase the length of your loan and could slow down the rate you pay off principal. Plus, a refi comes with fees that are either due at signing or need to be folded into the mortgage. If you’re moving in the near term, refinancing could add cost, not savings. Are you looking to pull out equity? Is the plan to take some equity out in cash and refinance a larger mortgage at a lower rate? If you’re paying off high-interest credit card debt, this approach could make sense. Will your monthly mortgage payment be lower? That depends on the difference between your old and new mortgage rates and the amount you are refinancing. You may not qualify for the lowest rate you see online. Your refi mortgage rate depends in part on your credit score. The lower your score, the higher the refinance rate. Then the credit bureaus may want to see you make these new payments over time before boosting your credit score, all other things being equal. Know your break-even point. Let’s say that by refinancing you save $100 a month on your mortgage payment, because of the lower rate. But it cost you $3000 to refinance (new appraisal, origination fees, credit check, etc.). That means it will take 30 months, or 2 ½ years, to break even. Is it worth it? Time to refinance? Give me a call for a mortgage professional recommendation! I want you to have the best mortgage at the best rate that meets your goals. Give me a call to be connected with my preferred mortgage professionals!     |
JANICE HOVORKA RE/MAX 303-324-4705 janice@janicehovorka.com http://www.janicehovorka.com |