Is Now the Time to Refinance?

If you're wondering if you should refinance, find out here. See our list of questions to determine if now's the right time to refinance.

1. Are interest rates on the rise? If you expect interest rates to rise and you have an adjustable-rate mortgage (ARM), then you might consider applying for mortgage loan refinance rates to switch to a fixed-rate mortgage. You can lock in a fixed interest rate and not have to worry about skyrocketing payments in the future. For those with a fixed-rate mortgage, you do not need to refinance if interest rates are on the rise because your rate will remain the same regardless.
2. Are you struggling to make your mortgage payment? If making your mortgage payment each month is a stretch for you, you can use mortgage loan refinance rates to lower your monthly payment. Even if interest rates are at the same levels they were when you took out your existing mortgage, you can still refinance for a longer term to reduce your monthly payment burden.
3. Is your credit score higher? When you applied for your existing mortgage, you may have had little credit or somewhat damaged credit. Your credit score plays a huge role in determining your mortgage loan refinance rates, so if you've improved your score, you might consider refinancing. You will probably get much more competitive mortgage loan refinance rates, thereby lowering your payments and interest rates.
4. Can't handle your ARM? Some customers are attracted to the initially low mortgage loan refinance rates of an ARM, only to discover that the later fluctuations in payments and rates are too much to handle. If that's the case, you can apply for mortgage loan refinance rates on a fixed-rate mortgage to eliminate the stress of constantly fluctuating rates and payments. You might also consider applying for mortgage loan refinance rates on another ARM with more favorable rate caps. This will limit how much the interest rate can increase over a certain period and over the life of the loan.
5. Do you have at least 20% equity in your home? If your home equity has climbed above 20%, you might apply for mortgage loan refinance rates to avoid Private Mortgage Insurance (PMI). If you made less than a 20% down payment on your current home, then your lender requires you to pay PMI, which can be a significant monthly expense. If your lender won't cancel your PMI once you've built 20% home equity, you should apply for mortgage loan refinance rates to save yourself the expense.
6. Are you interested in debt consolidation? For those who have considerably equity in their homes but a substantial amount of other debt, you can apply for mortgage loan refinance rates on cash-out refinancing. Cash-out refinancing allows you to take out a larger mortgage than what you currently owe and take the difference in cash. You can then use the cash to pay off other, high-interest debts. If you inqueries, please visit our FAQ page.