How to Refinance Your Mortgage and When to do It

Professional Mortgage Solutions has helped many families in Rego Park, NY refinance their mortgage. We welcome you to reach out and discuss the best time to refinance your home loan. Professional Mortgage Solutions also offers a free refinance tool on our website. Today we are here to discuss when to refinance a mortgage. The answer largely depends on your current situation, as well as the market, and the development of new home refinance programs.

It is important to first check your credit score and then to determine your current home value. It is smart to plan and look for the right time to refinance a mortgage. You should also get paperwork and financial documentation in order. When you refinance a mortgage, you are seeking to replace or re-do your current home loan with a new mortgage. Please take time to understand the ultimate costs. You are going to commit time and money to providing documentation, paying fees, and other costs.

Reasons you May Want to Refinance

When you consider when to refinance a mortgage, you will need to explore your motivations for making this change. You may want to take advantage of a lower interest rate or change an adjustable-rate mortgage to a fixed-rate mortgage. The government may also implement a refinancing program aimed at helping homeowners. You may even be eligible to lower or cancel your mortgage insurance payments at certain levels. Homeowners may also explore a refinance since their credit score has improved, and they may get better terms.  You should consider how much money you will save and how low your interest rates will drop if these are some of your motivations.

Another motivation to refinance may be to use your home equity to make repairs, consolidate debt, or pay for another expense. You could refinance your mortgage in order to create equity at a faster rate than before, but you will want to consider if this makes financial sense. In addition, be sure to review the impact a refinance will have on your taxes since governmental tax deduction policies may also change over the years.

When is it a Good Time to Refinance?

When considering when to refinance, you will want to check current policies and programs governing your mortgage. You should also consider how much your home’s value has gone up, or whether it has declined. In addition, you can look at whether interest rates have changed since you first bought the home. If you have multiple mortgages on the home, you can weigh whether you need to refinance all of the loans. Many financial advisors will warn you against borrowing more than you need if you are seeking to increase the cash flow in your budget with the refinance of the mortgage. Some customers believe that they can invest the funds they pull out and make more interest in the stock market. However, we have all seen how variable stocks can become.

Professional Mortgage Solutions seeks to build long-term relationships with clients and guide them towards making a great choice when they refinance their mortgage.  Our team in Rego Park, NY is there to help educate you on the best time to refinance a mortgage.