Should I Refinance?

If you were lucky enough to finance your home when mortgage rates were low and you locked in a low fixed rate loan; you may have no interest in refinancing at this time. However, if you bought your home when rates were high, or chose an adjustable rate loan to keep your early payments lower, this may be an ideal time for you to consider refinancing your home.

One rule of thumb is that if your present interest rate is at least 1.25% above the current market rate you should investigate a refinance. There are other factors that could make a refinance worth while even if the rate spread is not that wide. Refinancing can be a good idea for homeowners who:

• Want to get out of a high interest rate loan to take advantage of current lower rates.
   
• Have an adjustable rate mortgage (ARM) and want a fixed rate loan to have the certainty of knowing exactly what their mortgage payment will be for the life of the loan.
   
• Want to convert an ARM with a lower interest rate or more favorable terms (such as better rate and payment caps) than the ARM they currently have.
   
• Want to build up equity more quickly by converting to a loan with a shorter term.
   
• Want to draw on the equity that has built up in their home to obtain cash for a major purchase or for their children's education.
   

If you would like to find out more about refinancing your home, please fill in our online application and we will call you with a current market analysis.