When to Refinance a Mortgage: Is Now a Good Time?

With mortgage rates near rock bottom, it’s a good time to refinance a mortgage, right? Sure, in many cases, no doubt.

As a matter of fact, 17% of U.S. homeowners with a mortgage on their primary residence refinanced in 2020, according to a September NerdWallet survey conducted online by The Harris Poll among 1,413 U.S. homeowners. And nearly one-third (31%) of homeowners with a mortgage on their primary residence said they were considering refinancing within the next 12 months, according to the survey.

To know if it’s the right time to refinance, first determine how long you plan to stay in your home, consider your financial goals and know your credit score. All of these things, along with current refinance interest rates, should play a role in your decision about whether — and when — to refinance.

When does it make sense to refinance?

The usual trigger for people to start thinking about a refinance is when they notice mortgage rates falling below their current loan rate. But…

Continue Reading →

This article was written by Hal M. Bundrick, CFP® and originally published on www.nerdwallet.com