There’s more to consider than just getting a lower mortgage rate. You should also weigh how long you plan to stay in your home. Use our refinance break even calculator, to determine the number of months to break-even if you refinance the loan.
People typically start thinking about a refinance when they notice mortgage rates falling below their current loan rate. But there are some other good reasons for refinancing your home loan:
If you’re looking to pay off the loan quicker with a shorter term.
You currently pay private mortgage insurance (PMI) and now you’ve gained enough equity in your home to refinance without the mortgage insurance.
You’re looking to utilize your home equity with a cash-out refinance.