Would Refinancing Make Economic Sense?
There are many reasons why you might consider a refinance. Depending on your current loan’s term and rate, a refinance could lower your monthly payment, shorten the length of your loan, or help you convert equity to cash for renovations, repairs, or even college tuition.
But refinancing is not always prudent. It is important that you carefully assess the benefits compared to your current loan to ensure that the benefits are sufficient to warrant refinancing. It is easy to present figures to suggest refinancing is a viable option, but it requires the insights and analysis of a knowledgeable and trustworthy loan officer to help you make that determination. As a first step, use this calculator to compare your current loan to the benefits of a refinance. Don’t be misled.
Keep in mind, these numbers are only an estimate. To get a more accurate assessment, contact a Park Cities Mortgage loan officer. They will assist you and you can trust their insights.
Other Refinancing Considerations
Even if a refinance will result in savings, make sure you consider if the savings are worth the costs of refinancing. There are many factors that should be considered in an evaluation, with costs being only one. The time that you expect to remain in your home is another significant factor. As with your original mortgage loan, a refinance will require various closing costs, fees, and points that may be paid up front or possibly refinanced into your new loan. To get an idea of these expenses as well as to determine if they should be paid out of pocket or “rolled into” your new loan, contact a loan officer at Park Cities Mortgage today.
After considering all of these factors and it seems that refinancing makes economic sense, consider as many loan options as possible. Typically, homeowners have a realistic expectation of how much longer they will remain in their home, and this is an important factor to consider. Cash-out refinances, for example, can be helpful if home repairs are needed or if the payoff of accumulated revolving debt is becoming an increasing challenge. You may be in the financial position to obtain a shorter mortgage term that will permit you to accumulate equity faster. Even the ability to eliminate monthly mortgage insurance may warrant considering refinancing. The guidance of an experienced Park Cities Mortgage loan officer will help you expand your evaluation to include important factors that you may be overlooking.
Rely on a loan officer that will provide you insights and recommendations that are beneficial to you, including the recommendation that refinancing may not make economic sense. That is what you can expect from Park Cities Mortgage, a company that you can trust. Contact one of our experienced loan officers today.