Mortgage rates are at an all-time low, and now may be a good time to refinance your home, but how often can you refinance your home? The answer may be more complicated than you think, but we’ll discuss the different possibilities

If Interest Rates Have Gone Down

If you have a good credit score, you may be able to qualify for a lower interest rate on your home loan, which could save you money in the long-run. If interest rates have gone down since you first took out your mortgage, it may be worth looking at home refinance options. Keep in mind that you may need to pay closing costs and fees associated with refinancing.

If You Had Improvements Made to Your Home

Man at computer filling out applicationIf you have made improvements to your home, such as adding a new bathroom or renovating the kitchen, you may be able to find home refinance options for a higher loan amount by getting a cash-out home refinance. This means you can take out a new loan for more than you currently owe on your home. This could help you pay off other debts or make home improvements. However, you will need to have the equity in your home to qualify for a cash-out home refinance.

If You Are Struggling to Make Your Monthly Payments

If you are having trouble making your monthly payments, refinancing your home could help you get a lower interest rate or extend the term of your loan. This could lower your monthly payments and make them more affordable. However, if you extend the term of your loan, you will end up paying more interest in the long run. Also, if you have poor credit, you may not be able to qualify for a lower interest rate.

Understand all the Costs Before Proceeding

Some home refinance options can be costly. You will need to pay closing costs, which can include appraisal fees, loan origination fees, and title insurance. You should also consider the costs of any prepayment penalties that may be associated with your current mortgage.

Talk to Your Lender

Elderly couple talking to mortgage officerBefore refinancing your home, talk to your lender about all the costs involved and whether it is right for you.  Be sure to carefully consider the terms and conditions of your home loan, including any prepayment penalties or fees associated with refinancing. If you are still unsure about whether you should look for home refinance options, it may be a good idea to consult a financial advisor for additional guidance.

Do Your Research Before Making a Decision

There are many websites that offer refinancing calculators that can help you compare the costs of refinancing with the savings you could realize over time.  You may also want to look into other options, such as home equity loans or home equity lines of credit, which could help you get a lower interest rate and better terms. Ultimately, the decision to refinance your home depends on a number of factors, so it is important to do your research and carefully consider all of your options before proceeding.

Union Capital Mortgage

If you are interested in refinancing your home, Union Capital Mortgage can help. We offer a variety of home refinancing options so you can find the right solution for your home and your needs. We also have a wide range of mortgage options available, so you can find the perfect loan for your home. 

To learn more about our home refinancing options, please call us today or visit our website. We would be happy to help you get started on the road to home refinancing success!