Signs It’s Time to Refinance Your Mortgage
Interest Rates Have Dropped The first and most obvious reason to refinance is when interest rates have dropped since you took out your mortgage. Even a seemingly small decrease, like 1%, can make a big difference over the life of a 30-year mortgage. If rates have fallen from when you took a mortgage or had home purchase assistance , refinancing could lower your monthly payment . It’s important to factor in the cost of refinancing , though , like closing costs and fees, which can be anywhere from 2% to 5% of your loan amount. But even with those costs, a lower interest rate might still make refinancing worthwhile. A quick chat with a mortgage professional can help you crunch the numbers. Your Credit Score Has Improved Maybe when you bought your house, your credit score wasn’t exactly shining. But since then, you’ve been paying down debt, keeping up with payments, and overall being a financial superstar. As a result, your credit score has improved, which means you may qualify for be...