Mortgage rates are low. Should I refinance?

Mortgage rates are low and lenders are offering no upfront costs. Many lenders are even offering no lenders fees.

Does this mean that you should refinance your mortgage?

The answer is: it depends.

Depends on what, you may be asking?

1. How long are you planning on remaining in this house?
2. Is your current mortgage more than 2 percentage points higher than the rate you can get by refinancing?
3. Do you have equity in the property?
4. Could you qualify for a new loan?
5. Is your current job stable?

These are some of the questions you need to ask yourself before deciding that refinancing is the right answer for you. If you see yourself selling this property in the next couple of years, usually refinancing doesn’t make sense from a purely financial perspective. However, if you feel that the area you are in will take a long time to come back from Covid-19 and that there may be a longer selling cycle it may make sense to take advantage of lower rates and thus lower mortgage payments.

So do your due diligence and see if refinancing makes sense for your particular situation.

I believe in you!