Do you know the right time to refinance?
Spoiler: there’s not a universal answer.
Way back when, the rule of thumb was to wait for an at least 2% drop in the market to make refinancing your home worthwhile. That made sense when the average loan amount was smaller.
Today, however, a less significant rate change can bring substantial savings. At Community Choice, we typically look for a decrease of 0.75% from your existing rate to the current rate as a good benchmark to begin considering the benefits of a refi.
So, let’s say you’re pretty darn close to that 0.75% benchmark. How the heck else do you know whether a refi is right for you right now? Ask yourself:
- How much will it cost?
- How much will I save in interest each month?
- How long do I plan to keep the loan?
Use the Should I Refinance Calculator to compare your original mortgage to your projected refinanced mortgage. It’s a great tool to illustrate your potential savings, and we’re happy to provide you with a more accurate look at what those numbers could be.
Reach out to our UNbeatable Mortgage Team if you’d like to learn more.
If you’re ready to refinance your mortgage, apply online today.
This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.