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When Is The Right Time To Refinance My Home Mortgage?

Refinancing My Home Mortgage – Is Now The Right Time?

Several Things You Need to Know to Make the Right Decision

1. Are the current rates and mortgage market your best indicators to know when to refinance?

2. What about the other factors that has to do with mortgages, such as your mortgage insurance, rising monthly payments and your long-term goals for paying off your mortgage loan?

3. Will refinancing enable you to consolidate debt and to lower your overall monthly payments?

Each of these is important questions when considering whether to refinance your home. You’ll have to take time and carefully study each factor involved to determine how best you can balance these factors so you can make a complete and informed decision.

If you are paying on a mortgage loan requiring you to carry mortgage insurance, determine if you have enough equity to eliminate that insurance with a refinance. If so, taking advantage of home mortgage refinancing could actually save you hundreds of dollars a month, especially if your rates haven’t changed or have changed only slightly.

Fixed Rates are Easy to Compare-

If you have a fixed rate on your first mortgage, you will easily be able to compare it with the current mortgage rates that are available. Being able to easily compare rates enables you to know whether refinancing right now is a good idea or not. If your fixed rate is lower than the current interest rates being offered on your primary mortgage loan then you know that you won’t want to refinance right now.

Adjustable Rate Mortgage (ARM) and Home Mortgage Refinancing-

If you are a homeowner that has an adjustable rate mortgage and the interest rates are starting to rise, your payment will be increasing as well. If this is the case, you need to consider how much more you will be paying per month as the interest rates continue to rise.

If you signed a three- or five-year ARM in the last few years, be sure you are aware of your introductory term expiration date. You will want to start refinancing your loan unless you want to start making a much higher monthly payment.

You are probably realizing that the right time to refinance is more about you than the market. Although low interest rates are always a factor, your personal situation is the best indicator.

Whatever you do, take the situation into your own hands. Refinancing before you have to make your first increased payment with a three year or five year ARM begins can save you a lot of money each month which can have a huge impact on your lifestyle. This is a clear indication that now is the time to ‘refinance my home mortgage.’

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