Should I refinance my mortgage in Towson?
With rates as low as they are right now (please note, the date of this post is in July 2020, and mortgage interest rates can change daily,) many people who have mortgages at higher interest rates are considering whether they should refinance their mortgage.
But should you?
The answer is – it depends on your current situation.
- If you have similar income from when you first qualified for your mortgage, and you plan to refinance for about the same amount, and interest rates are lower, then it may be a good time to refinance.
- If your income has changed/reduced, then you may want to talk to your loan officer to find out whether you would qualify for a new loan.
- If you have added more debt to your bottom line than you had when you last financed your home, it is possible your qualifications may have changed.
- if your credit score has changed, it could affect your ability to refinance to desirable terms.
- If interest rates are not much better than where they were when you financed your home, the costs to refinance may possibly make it not worthwhile. Again, speak with your mortgage professional to find out the costs vs the benefits for your particular situation.
- If you are refinancing to take money out (refinancing for more than your current mortgage,) and it would add on mortgage insurance, it is possible that would make it not worthwhile to refinance at this time.
- If your home’s value has changed in a negative equity way, it could affect the loan amount you could get.
Refinancing your home can be a great way to save some money each month if the terms work in your favor.
Here are more details about refinancing at HomeKeepr.
It is important to speak with your mortgage professional and truly understand the costs – whether you would need to bring money to the table, or if fees would be rolled into the new mortgage, there are variable factors that need to be considered to determine your best course of action.
If you would like recommendations on mortgage lenders in Towson and the surrounding area, please contact me. I would be happy to give you some names and contact information!