Is Refinancing Your Mortgage the Right Move for You?
Refinancing your mortgage can be a smart financial decision, but before moving forward, consider these key questions to determine if it’s the right choice for you:
- What are my goals for refinancing? Are you looking to lower your monthly payment, pay off your loan faster, or tap into your home’s equity? Identifying your goals will help you find the best loan options.
- What is my home’s current value? Research recent sales of similar homes in your area to get an estimate of your home’s worth.
- How much equity do I have? Check your latest mortgage statement for your loan balance. Subtract this from your home’s estimated value. For example, if your home is worth $350,000 and you owe $275,000, you have $75,000 in equity. If your home’s value has decreased, refinancing may be more challenging.
- Do I have any other liens on my home? If you have a home equity loan or line of credit, the outstanding balance affects your available equity.
- How long do I plan to stay in my home? If you’re planning to stay for several years, refinancing could be beneficial. If you plan to move soon, you may not recover the costs of refinancing.
- What are the current interest rates? Refinancing could be a good option if you can lower your rate, switch from an adjustable-rate to a fixed-rate loan, or secure more favorable terms. Use our mortgage calculators at to estimate potential savings.
- What fees are involved? Consider closing costs, appraisal fees, and other expenses to ensure refinancing makes financial sense.
Ready to refinance? You can get prequalified online for free or you can contact one of our mortgage loan officers to help explore your options. Contact us today or find a branch near you.