With recent drops in rates, you might be asking if now is the perfect time to refinance. Find out if refinancing makes sense for you right now:
1) INTEREST RATES HAVE DROPPED
Even a small decrease in rates —like 0.5% or more —can lead to substantial savings. A good rule of thumb is a decrease of 1% or more.
TIP: Reach out to your lender and ask them to keep you updated on interest rates and advise you on the best time to refinance.
2) YOU WANT TO SWITCH LOAN TYPES
If you have an adjustable-rate mortgage (ARM), now might be the time to switch to a fixed-rate mortgage. With rates dropping, you can lock in a low, consistent payment before rates potentially rise again. This could provide more stability and predictability in your budget.
3) YOU WANT TO ELIMINATE PMI
If your home’s value has increased, you could refinance your conventional loan to eliminate private mortgage insurance (PMI) earlier than your original repayment schedule allows.
Curious to know If this is a possibility? Reach out — I’d be happy to send you a FREE home value estimate!
