July 30th, 2020 6:48 AM by Jackie A. Graves, President
The coronavirus pandemic has taken a heavy toll on the U.S. economy, and while the housing market has begun its recovery from the economic downturn, many homeowners may be turning to mortgage refinancing instead of selling their home.
The good news is that now may be a better time than ever to refinance your home mortgage. National mortgage interest rates have hit a record low, making it easier to score a lower interest rate on quite possibly your largest debt.
But just because rates are favorable, it doesn’t mean refinancing is the right step for you. Here are some good reasons to consider it, along with some reasons that should make you think twice.
The best reasons to refinance your mortgage
A mortgage refinance can serve many purposes, but here are the three that may make the most sense:
Worst reasons to refinance your mortgage
Depending on your current financial situation and your plans with the home, you may be interested in using a mortgage refinance loan to resolve short-term concerns. However, it may not be the best to use a long-term financial solution to do it. Here are some reasons that may not work in your favor in the long run:
How to decide if refinancing your mortgage is right for you
Refinancing a mortgage loan is a significant financial decision, and it’s important to understand your motivations before you start shopping around. Take some time to think about how the decision can affect you both now and in the future.
Also, run the numbers to make sure you’ll actually save money with a mortgage refinance — whether that’s through interest savings on consolidated debt or because of the reduced monthly payment.
If you’re not certain, consider consulting with a financial advisor, who can provide you with objective, expert advice on the matter.
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