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Refinancing reasons and timing

refinancing

Time to refinance

Most homeowners will at some point have to ask themselves when is it time to refinance.  I will give some of the reasons it is time to refinance or not in the following bullets.

If your currant interest rate is higher than the prevailing rate and the closing costs can be recovered in a reasonable amount of time it is time to refinance.

If you have a second mortgage and it can cost effectively be combined with the first it is time to refinance.

If you have a need for funds to pay off non tax deductible debts it is time to refinance.

If you feel you can make more profits with the money from a cash-out mortgage it is time to refinance.

If you need to lower your monthly costs and can extend or change the terms it is it is time to refinance.

Reasons it’s not time to refinance

If you have an adjustable mortgage that is reaching the end of term of its first adjustment it is time to refinance.

If you do a cash-out mortgage to pay off debts and do not have the discipline to not renew the same debt it is probably not time to refinance.

If you are going to sell your house in the near future it is not time to refinance.

If the payment saving is so small it will take an inordinate time to recapture the closing costs, it is not time to refinance.

If you need cash to retire and qualify for a reverse mortgage it is time to refinance.

If you want your house paid off when you retire and the term extension goes past your retirement age it is not time to refinance.

These are some of reasons it might or might not be time to refinance

The tips on this website should be considered food for thought only. LoperOnline.com is a clearinghouse of ideas, not a professional adviser. Before any important decision, please consult the appropriate professionals (lawyer, accountant, real estate agency, broker etc.).

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