Home > NEWS > Is a Mortgage Refinance Right for You?

Is a Mortgage Refinance Right for You?

At Donna Mullen & Associates, we want to help you make the best possible decisions when it comes to your mortgage, and one of the biggest decisions that homeowners face is whether or not to refinance that mortgage. In this article, we’ll go over a few key factors to consider in order to decide whether a mortgage refinance is the right move for you at this time.

  • How Long Do You Plan to Live in Your Current Home? One of the biggest factors to think about when deciding for or against a mortgage refinance is how long you plan to stay in your current home. There are costs associated with refinancing, and you should only go through with it if you plan to keep living in your home long enough to recoup them.
  • What is Your Current Interest Rate? Another thing to consider before mortgage refinancing is your current interest rate. Specifically, if you can lower that interest rate by at least 1% by refinancing, then it may be a wise move, as it will lower the amount you owe in the long run. If you want further advice on this matter, don’t hesitate to give us a call.
  • Would Refinancing Allow You to Get Rid of Private Mortgage Insurance? A third thing to think about in regard to a mortgage refinance is private mortgage insurance, or PMI. In times when home values are in decline, homeowners may be required to carry PMI in order to make up the difference between the home’s past and current valuations. If you currently have PMI, you may be able to get rid of it by refinancing your mortgage, assuming the market is healthier now. This is also worth asking an expert about, so don’t be shy about reaching out to our team.