When Is The Best Time to Refinance?

Knowing all about Refinancing and when to refinance is our specialty. Yes, it is true that some situations are better than others to refinance. So, when is the best time to refinance then?

Lower Your Monthly Payment

If your interest rate is higher than the current interest rate, refinancing to a lower rate could save you hundreds of dollars per month. You could save so much money per month on the house that you already make payments to just by taking advantage of a lower rate. Amazing stuff here. (Of course, this is all subject to your credit score and income)

Shorten Your Loan Term

If you are ready to knock some years off the life of your loan, refinancing into a shorter term can save you money on interest over the life of your loan. If you have equity or you’ve owned your home for a few years, this might be the right fit for you. Or you could take advantage of shortening your loan term and pay a little more each month if you don’t have tons of equity.

To Get Rid of PMI

If you are paying private mortgage insurance (PMI) each month, refinancing your home could be a great way to knock off that pesky payment.

When You Need Cash for a Remodel or To Payoff Other Debts

The two most common reasons to do a cash out refinance is to either use the cash for a remodel or to payoff other debts. Anytime you make improvements on your home, you are investing in your home, and the value will go up. Want to pay off debt instead?  This will free up your extra cash to be used on other investments, to be closer to being debt free! Of course, there are lots of other reasons to do a cash out refinance too.

Want to see what refinancing could do for you? Please reach out to use here at The Ben Lemon Team to see what you could save!