Source: Yahoo Finance
Is now the right time to refinance? If you’re a homeowner, it’s a question you’re bound to ask yourself at some point during the life of your mortgage.The short answer is … It depends on your specific situation and goals.
There are a few reasons to refinance your mortgage– maybe interest rates have dropped since you took out your initial loan and you want to take advantage of the lower rate, or you want to shorten your loan’s term.
For instance, if you have an adjustable-rate mortgage you might want to switch to a fixed-rate loan in order to lock in the lower interest rate.The good news is that mortgage rates are still near historic lows.
The national average for a 30-year fixed mortgage is currently about 4%, according to Bankrate.com.
But before you decide to take the plunge, you’ll want to ask yourself a few questions. First, do you own at least 20 percent of your home? Many banks won’t even consider refinancing until you do.
Ask yourself how long you have left on your loan and how long you plan to stay in your home.
If you have five years or more left on your mortgage and plan to live in your home for at least another three years, it may pay to spend the money and refinance now.
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