When Is the Right Time to Refinance?

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When is the right time to refinance my home?

Everyone loves to save money, right? First, let’s look at your motivation to refinance.  There are basically two types of refinances.

Rate and Term:  This is when you refinance the remaining balance of your mortgage to take advantage of the lower interest rates.  It is also possible to take advantage of the recent property appreciation, drop your mortgage insurance and either lower your monthly payment or shorten your term, both are great options!

Cash-Out:  With home buyers starting to out-number available home inventory, we have many clients choosing the option of using their equity to update kitchens, bathrooms and even making additions.  These are all great options for staying put and increasing your home’s value!  Let’s face it since we all have debt, this option can also allow you to consolidate debt and lower your monthly obligations dramatically  Keep in mind if you choose the Cash-Out to refinance option and choose not to include all of your unsecured debt at closing, you need to have a plan to retire any unsecured debt efficiently.  This is an area where we can educate and assist you because, without a clear plan, the debt cycle can easily creep its way back into your life.

So why doesn’t everyone refinance?  If you are not planning on staying in your home and if the long-term costs outweigh your short-term plans, there may be better options to achieve your goals.

Every situation is different, call or email Chris or Bob if you would like some personalized tips and tricks to improve your score with little effort and keep those questions coming!

Chris Conlon cconlon@afncorp.com 704-609-5017

Bob Parm bparm@afncorp.com 704-778-2603

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