How to Figure Out If You Should Refinance

Property Tax Reduction Consultants

125 Jericho Turnpike, Suite 500 
Jericho, NY 11753

(516) 484-0654 or (631) 484-0654

If you've heard that interest rates on home loans are still relatively low, you may be going back and forth with the idea of refinancing. However, although periods of low interest rates may indicate that it is, in fact, a good time to revisit your mortgage, making the decision to refinance involves a lot more than just understanding the change in interest. Keep reading for some additional factors that should go into your decision.

1. You are currently paying mortgage insurance.
Mortgage insurance is required when you do not put 20% down on your home at the time of purchase. Since you can stop paying mortgage insurance once you have this 20% equity in your home, now is a great time to see where you stand - if you qualify, you can start saving yourself hundreds of dollars per month. Realtor.com explains that now is a good time to look into this because home values are continuing to increase, and as they do, so does the equity in your home, which means you could have already reached that 20% requirement.

2. You have plans to stay in your home for a long time.
Refinancing isn't just a matter of updating paperwork - it also involves closing costs, thus requiring you to spend money. That said, you want to make sure that you're going to be in that house for a long enough period of time that the payoff is worth it. While there are some no-cost refinance options out there, the interest rates on these may be a little higher, so you'd really need to analyze how much you'd be saving in the long run depending on how long you plan to stay.

3. You want to pay your loan off faster.
If you want to pay your mortgage off faster and you can afford to increase your monthly payments, then refinancing could be a great option. Though it may seem like you're spending more at first, in the long run you could save yourself a ton of money where interest is concerned.

If you're thinking about refinancing, the most important thing is to make sure that it makes sense for you - whatever the current interest rates are, you must feel confident that your personal circumstances will be benefited in one way or another by moving forward with the process!

P.T.R.C. Inc. has been specializing in reducing Long Island property taxes since 1990. For information about how to file a tax grievance, please call (516) or (631) 484-0654 or email info@ptrc.com.