3 Situations Where Refinancing Your Mortgage May Not Be Beneficial
Sunday, 21 April 2024, 23:00
Refinancing a mortgage could save money -- but only under the right circumstances.
The interest rate you pay when you first sign your mortgage may not be the interest rate you pay for life -- even with a fixed loan. That's because you may decide to refinance your mortgage at some point in time.
3 Times When Mortgage Refinancing Might Not Be a Good Idea
- When interest rates are higher: Refinancing doesn't make sense when mortgage rates are elevated.
- When your credit score has taken a hit: A lower credit score may lead to unattractive refinance rates.
- When you don't plan to stay in your home for very long: Consider the breakeven period and potential moving plans before refinancing.
Refinancing is an option that homeowners should consider carefully to ensure it's financially beneficial in the long run.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.