TO REFINANCE OR NOT TO REFINANCE...THAT IS THE QUESTION?
Interest Rates are historically low. BUT, this doesn't necessarily mean you should refinance? To determine if you should refinance, you want to establish your BreakEven point.
To determine your BreakEven point you need to ask yourself:
How many years it will take to re-coup the cost of my refinance through lower interest payments?
If you anticipate selling prior to the BreakEven point (even if your interest rate was at 1%), it doesn't always make financial sense to refinance your loan.
But, if you plan on owning your home beyond BreakEven, taking advantage of today's historically low interest rates is likely a prudent decision. Rates today are hovering around 4.25% (4.34% APR) for a 30-year fixed loan and 3.75% (3.875% APR) for a 15-year fixed loan.
Contact us to learn your BreakEven and to determine if now is a good time to refinance your current loan in order to take advantage of these interest rates if you are not in the market to buy.
To determine your BreakEven point you need to ask yourself:
How many years it will take to re-coup the cost of my refinance through lower interest payments?
If you anticipate selling prior to the BreakEven point (even if your interest rate was at 1%), it doesn't always make financial sense to refinance your loan.
But, if you plan on owning your home beyond BreakEven, taking advantage of today's historically low interest rates is likely a prudent decision. Rates today are hovering around 4.25% (4.34% APR) for a 30-year fixed loan and 3.75% (3.875% APR) for a 15-year fixed loan.
Contact us to learn your BreakEven and to determine if now is a good time to refinance your current loan in order to take advantage of these interest rates if you are not in the market to buy.
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