Bank rates are low - Is Now the time to refinance?

Bank rates continue to be at historical lows due to a combination of COVID-19 suppressing the economy and people’s reluctance to change things when the world seems so scary and the future seems so uncertain.

So is now the right time for you to refinance?

The answer depends on your goals and the answers to the following questions.

• Are you planning on staying in this home for more than a couple of years?
• Is the rate on your current mortgage 2% higher than the new rate, ie. the current rate of 5.75% and the new rate of 3.25%?
• Can you come up with the money for the closing costs or would that amount have to be rolled into the new mortgage?
• How much equity do you have in the property?
• Are you still working/receiving a regular paycheck so that you would qualify for a new loan?

This is not a comprehensive list. These are the most common questions you should ask yourself anytime you are considering refinancing vs maintaining your current mortgage.

Another question might be how long is left on your current mortgage? If you are within a couple of years of paying off the loan consider adding extra money to the principal each month and pay the loan off sooner.

Or if you need money to fix up the property you might want to refinance so you can use some of the equity to pay for the repairs/addition and still have a lower interest rate and possibly a lower monthly payment as well.

The choice is yours. Brain the Pros and Cons of refinancing, writing down responses on both sides, and then review the list to see which will work better for your situation.

I believe in you!