Will You Refinance Your Home Mortgage?

Do you think refinancing your home mortgage is a viable option for you? If you're looking for a way to up your credit score and lower your monthly payments all at the same time, then this is something that you should look into. 


It's something to consider when the interest rates are going down, not up. When it goes down one to two points from your current interest rate, then it's a great time to refinance because it will lower your monthly mortgage payment.


Is your mortgage rate adjustable or floating? When interest rates are dropping, lock in those lower rates and keep your expenses stable with a fixed interest rate. You'll be less stressed when you know what you're going to pay instead of waiting in dread for how much your payment went up this month.


Are you paying almost as much as you earn on your debts? Make it easier on yourself and refinance your mortgage, giving yourself more free money to put towards freeing yourself from debt once and for all. This will raise your credit score and allow you to qualify for lower interest rates, too.


Do you have a minimum percentage of equity in your home? If you've just about paid off your loan, you may be able to apply for a lower insurance coverage and cut your interest payment to about $150 every month. Typically, mortgage loans require an insurance for a default or a low down payment. Why would you need to pay so much when you're almost finished paying off your debt? 


When you're considering refinancing your mortgage, don't forget to include the refinance costs in your equation. These are fees you may need to pay the bank in order to refinance your loan and consolidate any debts. If it's equal to your projected savings, forget the refinance. It won't be worth it.