When Should You Refinance Your Home?
Have you been thinking about refinancing your house but not sure when you should do it? Today we want to talk about when you should be looking at refinancing your house, whether that was last year or five years ago.
There's only a couple of reasons why you should refinance your home and I'm gonna name off a few of them, no importance in order, but number one is obviously getting a better interest rate. And some of you may have bought your house about a year and a half ago, where interest rates were almost 5% and now they're hovering in that mid or so 3.75%, and you want to get a better interest rate 'cause you don't want to be paying 1% more over the next 30 years. Your credit is probably getting better now that you're a homeowner and you just want to simply get a lower interest rate.
Number two is getting rid of your private mortgage insurance. Some of you have bought your home at least two, three years ago where you've built up equity and you maybe only put three, five, or even ten percent down and now you have enough equity in there that you can get rid of your private mortgage insurance and remember, you can only do so by having an 80% loan to value. So let's say maybe you owe only $300,000 on your house so it could be worth 450 now, well you're at that 80% threshold so you can actually just get rid of that and lower your payment. Some of you have $100 of mortgage insurance or some of you can have up to $300 and that alone will save you so much over the course of the next 30 years.
Number three is a little bit of hosh posh, it has to do with number one, number two, but if you have a lot of equity, some people like to get a HELOC, or home equity line of credit, or they're just trying to pull some money out so they can go ahead and redo their kitchen, their bathrooms, whatever it is, maybe some of you have other debts you just wanna get rid of, and you just wanna take some money out, so those are the top three reasons why you should maybe look into refinancing your home and interest rates right now are so low, they're gonna keep continuing to go down is what we've heard and what we've read this coming year in 2020, so if you have a high interest rate, if you need money out of there, or just get rid of the PMI in your home, it'd be a really good idea to reach out to your lender, reach out to us, we have great recommendations, we'll put you in contact with the right people, that way you can make your home and your monthly payment just a lot lower than what you have now.