Should You Refinance? When to Refinance Your Mortgage

Should You Refinance? When to Refinance Your Mortgage

You have probably heard of it many times from lenders and financial experts: Refinance your mortgage to enjoy great savings. In the face of such advice, you may have asked: Is the advice actually worth taking? When is it right to refinance?

Primary Residential Mortgage, Inc. and other lenders in Fort Myers that offer the best mortgage rates answer your questions:

Real Savings

You can save with a refinance given the right conditions. With your refinance savings, you can pay off other debts you may have. Alternately, you can save up for different funds, such as your emergency fund, your child’s education fund (if you have children), or your retirement fund. You can even spend such savings in enhancing your home.

Lower Rate

As mentioned, you can only take out a refinance given the right conditions. One of the conditions involves the mortgage rate. To save with a refinance, you will need a lower interest rate. How low should the refinance rate be? A new interest rate 0.5% to 2% lower than your current rate can help you save up considerably.

Shorter Term

Besides the interest rate, you can save much more with a shorter term, but only do so if you can afford it. A shorter loan can cost more monthly, which may be difficult for some people. You can also refinance when you have a short-term mortgage, and you want a longer term. You will have to spend more in the long run in such cases, however.

Refinance Rates Today

Refinance rates today since May 11 climbed up mostly. The 30-year fixed refinance increased by six basis points to 3.93%. The 15-year fixed refinance also rose by four basis points to 3.11%. The 10-year fixed refinance, in contrast, remained steady at 3.09%. These rates represent the averages of refinance rates all over the United States.

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When you think you can refinance, find a lender that offers the best mortgage rate for you. Take your time and shop around; there’s no need to hurry.