We all have heard about what is a good time to refinancing our current home loans to a lower interest rate, but is this a good idea in all cases?
There is more than just the interest rate to consider when refinancing your home or buying a home. Choosing a right loan program, and having the right amount of fees are just as important. Make sure to look at all the options and don’t just go for the lower rate as a lot of lenders use that as bait. Compare your current loan to the proposed loan on short and long terms to make sure you are benefiting by saving monthly payments and building equity.
Sometimes getting rid of your monthly PMI (Private Mortgage Insurance) is more beneficial than just getting a lower rate. Changing the terms on your current loan program can make a difference to your monthly payment and equity. I have refinanced a lot of my clients from the 30 years to 20/15 years loans with little or no increase to their payment, they are now saving a lot of interests and will be building equity much faster.