Monday Mortgage Myth Buster 2/4/2019
Don’t assume that as interest rates have been inching up, that it’s no longer worth refinancing your mortgage. A rule of thumb is that if your current interest rate is at least about a half a percentage point higher than the going market rate, refinancing is likely to be worthwhile. As a matter of fact, we are seeing many people refinance into a rate that is not much lower than their current rate at all, but they are looking to remove their mortgage insurance, or they are pulling cash out to pay off other, higher interest rate debts. Refinancing can be beneficial for many reasons, the lowering of your current interest rate is just one of them. Just be sure you plan to remain in the home long enough to offset the closing costs of the refinancing, I would be happy to run numbers for you and to show you your break even.
Get your mortgage facts and myths straight and you’ll make much better decisions as you buy a home and manage your personal finances. You can save tens of thousands of dollars in the process, too.