3 Reasons Why You Would Consider a Refinance

While low-interest rates helped create a booming housing market in 2020, the impact on mortgage refinancing has been unforeseen since 2003, according to research from Freddie Mac.

Many are left wondering, is now a good time to refinance? According to some experts, now may not be the best time.

Expect closing cost

Refinancing your home doesn’t come without its share of expenses. Just as you would expect with a purchase loan, refinancing requires borrowers to pay certain fees on the day of closing.

Having a refinance goal in mind will help you determine the kind of mortgage product that is right for you.

Do the math

Has your credit score improved?

Your credit has a huge role in your refinance journey. Lenders use it to determine your qualifying interest rate, as well as certain closing costs that may be waived for higher scores.

Lenders use this score to determine how well or badly you manage your debt.

Are your expenses lower than before?

Interest rates may continue to go higher

The main reason homeowners choose to refinance is to save money on their monthly payments, and sometimes, this can lead to a reduction in the life of their loan.

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