There are lots of reasons why people consider refinancing their mortgage. You might qualify for a significantly better rate. You may want to switch from a variable-rate mortgage to a fixed mortgage so your payments are consistent. Or, you could be looking to free up the equity in your home. But, ultimately, the decision to refinance should come down to whether it will help you save money in the long run.
In most cases, refinancing your mortgage will incur hefty penalties and closing costs, so any savings you expect from refinancing should exceed those costs. How long you plan to stay in your home is an important factor to consider as you crunch the numbers and look at long-term savings—because you’ll no longer be reaping the rewards of those savings once you’ve sold your home. The difference between your current and new mortgage payments is also an important factor to consider.
Mortgage Winners brokers are experienced in assessing whether refinancing is in the client’s best interest. When you work with us, we will meet with you to discuss your unique situation and offer personalized advice to help you determine if refinancing makes sense.