29 Jan When Should You Refinance?
When Should You Refinance
Many of my previous clients have asked me this question. When should you refinance? With today’s rates at near or below 2 percent for FHA and VA. And in the low to mid 2’s for conventional this might be a great time.
A quick rule of thumb is if the rate you can now get is one percent or better than your current rate…then you should seriously consider it. Even people just refinanced at 4% should look at the numbers. You could do a no cost refinance and have a lower monthly payment.
Some other considerations for refinancing are…
· Pay off credit high interest credits cards with available equity in your home. This will help to lower your monthly obligations.
· Use some equity in your home to create a college fund or start a business.
· Use some equity from your primary home to buy a cabin or investment property.
· Use some equity for home improvements like a bath or kitchen remodel. Or any improvement like an addition that will also add value.
· Refinance to remove the PMI (private mortgage insurance) from your payment and lower your monthly payment.
· Remove some equity to retire or take that trip around the world you have always talked about.
· Use some equity to gift a child some money for a home purchase or to pay for a wedding.
Look for more updates in the future!
So many reasons to consider a refinance when the rates are the lowest in history!
So, when should you refinance? Maybe now! If you would like some names of lenders to discuss this with…just give me a call.
Look for more articles and videos in the future on different aspects of Minnesota real estate and our state of Minnesota.
Real estate is a wonderful investment!