Refinancing means replacing your current mortgage with a new one, usually to get a better rate, change your loan term, or adjust your monthly payment. It’s not the right move for everyone, so here’s how to think through it.
Common Reasons to Refinance
- Lowering your interest rate to reduce your monthly payment
- Switching from an adjustable rate to a fixed rate for stability
- Shortening your loan term to pay off your home faster
- Removing private mortgage insurance once you’ve built enough equity
What It Costs
Refinancing comes with closing costs, typically 2% to 5% of the loan amount, so it’s important to calculate your break-even point, meaning how long it takes for your monthly savings to cover those costs.
Is Now the Right Time?
The answer depends on current rates compared to your existing rate, how long you plan to stay in the home, and your overall financial goals. A quick conversation can usually tell you within a few minutes whether it makes sense.
Jesse Griffith can run a free refinance analysis to show you exactly what you’d save, if anything. Call or text 321-501-9579 to find out where you stand.