With all the news about rates, you may have already been thinking about refinancing. However, rates aren’t the only factor worth considering when it comes to a refinance. Here are 5 signs it’s time to review your mortgage and assess if a refinance is right for you.
1. If the value of your home has significantly increased
Home values are on the rise in many parts of the country. If your home’s value has increased, this may reduce your loan-to-value (LTV) ratio, which means you could refinance and potentially remove private mortgage insurance (PMI) if you currently have it.
2. If interest rates significantly decrease
If interest rates have gone down since you bought your home, now may be the right time for you to refinance. One thing a refinance can do is lower your monthly mortgage payments, which means you can save more money for a much-needed vacation, home improvements, or whatever matters most to you.
You’ll need to keep mind the total time it takes to recoup the cost of refinancing. If you plan to stay in your home for a while, a refinance can be a no-brainer. But if you plan on moving next year, you may want to hold off.
Click here to try our refinance calculator.
3. If your financial situation has changed
If you’re more financially secure now than when you first bought your home, it may be time to refinance. If you can comfortably afford a higher monthly payment, you may be able to build equity in your home faster and shorten the duration of your mortgage.
Alternatively, if you or your partner has experienced a job loss or other situation that has strained your budget, a refinance can lower your monthly mortgage payment, providing financial relief.
4. If your housing needs have changed
Is your family growing? Could your home use an update? A cash-out refinance can provide you with funds for home improvements or to add on to your home!
5. If you have future plans and need extra cash
A cash-out refinance can help you achieve your financial and homeownership goals. Here are a few ways you can use cash from your home’s equity:
-Consolidate debt
-Pay for education
-Purchase a vacation home
-Purchase an investment property
-Make repairs or improvements to your home
Is a refinance the right move for you?
No matter where you are in life, you want to make sure your mortgage matches up with your long-term financial and homeownership goals.
Contact your Granite Bank Loan Officer today to learn more about how a refinance can benefit you.
