“Should I refinance my house right now….is it worth the effort?”
With rates at historic lows, this is the most common question our advising team is currently receiving.
Having an advisor in your court is important to help you sort through the many variables of refinancing your home.
As with all large decisions the answer depends on many variables.
Having an advisor in your court to help you sort through the many variables is invaluable.
Now is the time consider your options, whether your goal is to save money, borrow cheaply to pay off more expensive debt, or to take money out of your home, now is the time to be considering your options.
Refinancing a mortgage is what we consider a ‘big win’, as it can really move the needle on your finance goals.
These are the types of wins our advisors are always on the lookout for, instead of asking our clients to stop drinking lattes.
Now that we have identified a potential big win, where to start?
Three Important Questions
Question #1: What is your current rate?
If your rate is around 3.5% or more, we advise exploring a refinance. The numbers may not work out, but it certainly is worth looking at your potential savings.
Question #2: Do you pay PMI on your current loan?
PMI is an added monthly charge on a mortgage for loans that have less than 20% equity generally and is not included in your rate but added as a charge.
Question #3: How many years left do you have on your current loan?
If you only have a few years left on your mortgage, refinancing may be more effort than it is worth.
Alternatively, you may want to improve cash flow by refinancing the remaining balance to a new 30 year option.
Next Steps
Everyone has their own set of circumstances when considering a refinance.
Whether you are a client, or an interested party, feel free to call or hit our “Contact Us” button to schedule a quick chat with one of our professional advisors.
**Disclaimer: We do not make money off your refinance. Our goal at LGA is to assist clients in making the best decisions for themselves. This starts with collecting a few pieces of data, then using that data to show the implications of different decisions. The desired outcome is our clients making the decision with all necessary facts in hand. This is one of the benefits of working with a fiduciary advisor instead of one paid off commissions.**
Best,
Nick Pirnack
Partner, Senior Client Advisor