Refinancing your current mortgage can be a big decision, especially if you're locked into a lower rate than current market rates. However, your situation and needs change over time, so why shouldn’t your mortgage? Now might be the right time for you to refinance into a new mortgage. You should take the time to consider the following questions to see if refinancing makes sense for you.
Most homeowners think the magic solution to accessing the equity in their home, while keeping their current rate, is obtaining a second mortgage or a home equity line of credit. That may or may not be the best option. Loans in the second lien position always carry higher interest rates than loans in the first lien position. In addition to the rates being higher, which are generally 3-6% higher than first lien loans, home equity lines of credit are variable rate loans. Depending on your unique circumstances, holding on to your current rate may not be the least expensive option.
Contact us to determine if a refinance is the right choice for your specific needs.