Thinking About Refinancing Your Home?

With mortgage rates on the decline, there’s a good chance you’re paying a higher interest rate on your mortgage loan than what is currently available. Perhaps it’s time to refinance your mortgage. Here are some questions to ask yourself when considering if now is the right time to refi.

Is it Worth It?
One big factor in refinancing is how long you plan on living in your home. Refinancing a mortgage means savings, yes, but it also comes with a fee. If you’re not staying at your home long enough to absorb the fee and reap the savings — think at least five years — then it’s likely not a good idea to refinance. However, if you are planning on being in your home past that five year mark, you may want to look into your refinance options.

Cost Considerations
Consider how much the refinancing will cost once it’s complete.

• Loan Terms. What you’ll pay depends on your lender and loan terms.
• Loan Fees. You could pay anywhere from $200 to three percent of your new loan.
• Closing Costs. As for closing costs, sometimes you can roll them into the new loan so you don’t have to pay out of pocket.
• Total Costs. If the total cost of refinancing makes financial sense, then you should go through with it.

Saving Potential
One reason to refinance your mortgage is to gain some wiggle room in your budget. You get a lower rate and with it a few extra dollars per month. This is a good idea if you use that cash toward your goals.

Do One Thing: Have a plan in place for that extra cash so that you spend it wisely.

Is now the right time for you to refinance? Fortera is here to help. Our Double Dip Rate Protection and Rate Match Guarantee programs are designed to help you get more out of the special place you call home. Visit our Home Refi page to learn more.

Original article by Chris O'Shea and adapted in partnership with SavvyMoney.