Common reasons to refinance, and how to tell whether it pays for itself.
Common reasons to refinance
- Lower your monthly cost.
- Shorten the length of your loan.
- Take cash out of your home's equity.
- Remove mortgage insurance.
- Move from an adjustable loan to a fixed one.
Does it pay for itself?
A refinance has closing costs. A simple test: divide those costs by how much you'd save each month. The result is roughly how many months it takes to break even. If you plan to stay in the home longer than that, it may be worth a closer look. The refinance calculator on this site does that math for you.
Watch the total, not only the monthly
Starting a new full-length loan can lower the monthly cost while raising the total interest you pay over time. David can show you both sides before you decide.
General information, not advice for your situation and not a loan offer. Programs and guidelines change; David can tell you what applies to you.