Why You Should Refinance Your Home LoanPosted by: Chelsea Riley | Posted on: October 16, 2019
Home refinancing is a big business these days to save your home from foreclosure and save you money. Refinancing your home should be done for the right reasons to make sure you make the best decision for you and your family.
You must answer a few questions before turning to refinancing your home. What are the things you need to consider before beginning the refinancing process?
-How long you stay in your home?
This response can have a huge impact on whether you should look to refinancing your house or not. If you are not going to stay in your home for a long time, then you may be better just sticking with your mortgage and not refinancing.
Image Source: Google
This is especially true if you have a mortgage variable rate (ARM) because you may not be able to process payments that come with a higher interest rate. If you stay in your home long term, you want to look into refinancing a fixed-rate mortgage to ensure that you can afford your long-term payments.
-Where do you think interest rates are headed?
If interest rates are heading towards and you have an ARM loan, it may be a good idea to refinance to a fixed-rate loan. On the other hand, if interest rates are falling and you have a fixed-rate loan, you can refinance to help reduce your mortgage payment.