If you’ve owned your home for a couple of years, you might have started thinking about refinancing. Maybe interest rates have dropped, and you want to save money, or you want to tap into your home’s equity to remodel your kitchen.
Learn about the pros and cons of refinancing your house and how it could impact your financial situation so you can make the best decision for your family.
Pros of Refinancing Your House
Here are some of the reasons why you might consider refinancing.
- Lock in a lower interest rate and lower monthly payment
- Refinance into a better loan product
- Free up equity for a remodel or other purposes
Interest rates fluctuate over time. If rates have dropped significantly since you first bought your home, it could be worthwhile to refinance. Since you’ll pay fees to refinance, most financial advisors recommend that you plan on staying in your home for at least five years after the refinance.
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