The decision to refinance your home depends on many factors, including the length of time you plan to live there, current interest rates, and how long it will take to recoup your closing costs. In some cases, refinancing is a wise decision. In others, it may not be worth it financially. Here are the top things to look at when considering a refinance:
- Make sure that you have adequate home equity—at least 20% will make it easier to qualify for a loan.
- It may be wise to refinance if you can lower your interest rate by 1% or more.
- Make sure you plan to stay in the home long enough to recoup the costs of refinancing.
- Be sure to calculate the break-even point and how refinancing will affect your taxes.
- Getting rid of private mortgage insurance, or PMI, is one good reason to get a new mortgage.
WSCU has mortgage experts ready to make your home buying experience as easy as possible! Give Julie a call at 801-866-1064