4 Signs You Should Refinance Your Mortgage Now for Optimal Savings

4 Signs You Should Refinance Your Mortgage Now

Mortgage refinance rates may fall further, but acting now could offer significant savings. Consider refinancing if:

1. You Can Get a Rate One Full Point Lower
   Most economists recommend refinancing if you can secure a rate that’s a full point lower than your current mortgage. Currently, rates for a 30-year loan stand at 6.54%. If your rate is 7.54% or higher, moving fast is advisable.
2. You Can Get a Rate Half a Percentage Point Lower
   Even savings of half a point can yield substantial monthly savings. For instance, if your rate is 7.04% and you can attain a 6.54%, that’s a monthly reduction of $133 on a mortgage of $398,000.
3. You Can Secure a Fixed Rate
   If your adjustable-rate mortgage is due to rise, refinancing to a fixed rate can provide the security of consistent payments, allowing other financial planning without surprises.
4. You Can Get a Rate More Than One Point Lower
   This option, though rare, allows for potentially huge savings. Purchasing points may be necessary, but a refinancing rate lower by 1.25% or more should be evaluated carefully.

Weigh all costs associated with refinancing against the benefits to decide the right time to proceed.