We are often asked by our clients, “when should I consider refinancing?” The answer to the question is a function of two factors: timing and math. When mortgage rates drop below your current rate, that is a good time to explore refinancing. If you’ve checked that box, now it’s time to do a little math.
Let’s say your mortgage provider estimates that refinancing will save you $50 a month on your mortgage, but the associated costs to refinance is $2,000. That means it will take over three years for you to recoup the costs of refinancing. If you plan to be in the house for well beyond that, then refinancing makes financial sense. But if you plan to move before that breakeven point, it probably isn’t a good time to refinance.
If you’re seeing that rates are low, it doesn’t hurt to have a conversation with a mortgage professional to crunch the numbers. At the very least, this will get you the information you need to make an informed decision about whether or not you should refinance your mortgage.
WATCH: When to Consider Refinancing Your Mortgage
3 Benefits of Refinancing
- Refinancing can reduce your monthly mortgage payment.
- Consolidate high interest debt with a low mortgage rate.
- Pay off your mortgage faster.
Refinancing Loan Options
- FHA Loans: Lower those rising mortgage payments with a government-insured fixed-rate loan
- Fixed Rate Mortgage: Find stability with a traditional fixed loan option.
- Adjustable Rate Mortgage: Pay less over a traditional fixed rate mortgage for the first years of your loan with a 5- or 7-year ARM. Get the lowest rates available and save money.
- VA Home Loan: Refinance up to 100% of your home or buy a new home with no down payment and never pay monthly insurance (PMI)!
Final Thoughts on Refinancing
At Omega Lending Group, we offer information on a variety of mortgage refinancing rates and options. When you are ready to take the next step, feel free to give us a call, text us or send us an email. We can advise you on which mortgage refinancing program meets your needs, and help you refinance with minimal hassle and work.