Should You Refinance Your Mortgage if Interest Rates Drop?Mortgage refinancing is when you take a mortgage of a certain interest rate and term length, and change it for a different interest rate and term. If you are looking to refinance your home loan it is usually done when rates have dropped considerably therefore making it advantageous to do so. When I say considerably it usually means a drop of at least 1% from what you're paying now. If you have an adjustable rate mortgage and interest rates drop, then locking in to a fixed rate loan for a set term is probably a wise decision. This is especially true if rates are on the rise! If you are looking to refinance because you need to pay down other debts, try something else, like a debt consolidation loan. The only time you should refinance for this reason is if you are planning on staying in your home for a few years, and the current mortgage rates are lower than the rates you are paying on your debts as well as your current home loan rate. If mortgage refinancing is something you would like to consider then be sure to ask the lender about the amortization schedule. If it was originally 25 years and you have paid on it for 10 years then you don't want to start over again at 25 years. The amortization should remain at 15 years. You will end up paying out thousands less in the long run. Refinancing when interest rates drop could save you thousands of dollars, but it isn't the best option for everyone. Discuss your options with a professional and discover what is best for you! Chris Rodriguez is the author/publisher of http://www.online-finances.com. Discover helpful information on mortgages, car loans, student loans, consolidation loans, and much more. Check out our website before you get your next loan or visit just to get tips and valuable information on a particular financial subject.
MORE RESOURCES updated Thu. March / 28 / 2024 Mortgage Interest Rates Today, March 28, 2024 | Rates Are Down This Week. Will They Stay That Way? Business Insider 3 Times Refinancing Your Home Makes No Sense The Motley Fool Types of Mortgage Refinance Options Bankrate.com Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider Underwater Mortgage: What To Do Bankrate.com Mortgage Refinance Rates: Compare Current Rates Business Insider Mortgage Interest Rates Today, March 27, 2024 | Rates Down Slightly as Homebuying Season Ramps Up Business Insider 30-year refinance rates: What to know CNN Underscored Mastering Rate-and-Term Refinance: a Complete Explainer Business Insider The best mortgage lenders for refinancing in March 2024 CNN Underscored 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider Should You Refinance Your Mortgage In 2024? Bankrate.com Current Student Loan Interest Rates in March 2024 Business Insider Current mortgage refinance rates CNN Underscored Best Mortgage Refinance Lenders In 2024 Bankrate.com MBA: Mortgage Applications Decreased in Weekly Survey Calculated Risk Current mortgage interest rates: Mortgage rates today CNN Underscored VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider Current FHA Refinance Rates Today - Mortgages Business Insider Mortgage Interest Rates Today, March 22, 2024 | Rates Rose This Week, But Could Trend Lower in Coming Months Business Insider Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports The Best Mortgage Refinance Rates in Canada NerdWallet When to Refinance Mortgage: Is it Time? - Buy Side from WSJ The Wall Street Journal Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports Current 15-year refinance rates — and lenders that offer them CNN Underscored Best Refinance Lenders of March 2024: Refinance Your Mortgage The Motley Fool Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider What Credit Score Do I Need To Refinance? Bankrate.com How To Get Equity Out Of A Paid-Off House Bankrate.com Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau Save up to $1,500 on a Mortgage Refinance With the New FHFA Program Business Insider CFPB Releases Study of Refinance Mortgage Loans Between 2013 and 2023 Consumer Finance Monitor Mortgage Interest Rates Today, March 20, 2024 | Could Rates Drop After the Fed Meeting? Business Insider Mortgage Rate Forecast February 2024 Bankrate.com How To Refinance Your Car Loan In 6 Steps Bankrate.com Mortgage Interest Rates Today, March 16, 2024 | Rates Tick up Business Insider
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