With interest rates still low and likely to rise this year, now is a good time to refinance if you bought your home more than a couple of years ago. Keep in mind, however, that most institutions have stringent refinancing criteria, so it may not be worth it unless you can refinance for a full 0.5% less than your current interest rate. Refinancing your mortgage at the same terms you have currently but with a lower interest rate (ideally 0.5-1% lower) will not only lower your monthly payment immediately, saving a bundle in interest in the long run. Another great refinancing option if you can afford a little bit of a higher monthly payment is to refinance from a 30-year loan to a 15-year loan. Although this means paying a few hundred dollars more each month for the duration of the loa5n, it can save a huge amount of interest over the life of your loan. Of course, refinancing is not a great option if you are not planning to stay in your current home longer than it would take you to recoup the cost of the loan, otherwise it can be a great money saving option both immediately and for the long-term.
Thinking of buying or selling a home in Sussex County? Give us a call at Cooper Realty Associates and put us to work for you – 302-644-2266.