Metro Brokers Financial

Refinancing Your Mortgage

Interest rates are at historic lows, and that is sure to make refinancing look attractive. There are several refinancing options, but you should first consider whether it’s the right time to refinance.

Should I Refinance?

When refinancing, you must consider the time you expect to remain in the home. If you only plan on staying in your current home for four years or less, then refinancing may not be the option for you unless you can recoup the costs of refinancing well before you plan to move.

It is generally thought that a homeowner should recover their closing costs in less than 30 months. Your loan officer can offer you multiple solutions. They may include you paying closing costs or having the lender pay the closing costs on your behalf (a higher rate of interest is used for lender to pay it). Each scenario is unique.

For example, if your closing costs are $3,000 and your monthly savings are $250, it would take 12 months before you reach your break-even point.

It’s also important that you pre-qualify. Like applying for the initial home loan, lenders will look at a variety of factors including credit worthiness, FICO (Fair Isaac Credit Score) score, loan-to-value and debt-to-income ratio. In addition, they will look at the current value of the house, so an appraisal will be needed.

Metro Brokers Financial, Inc., 5775-D Glenridge Drive, Suite 200, Atlanta, Ga. 30328 A Georgia Residential Mortgage Licensee # 5892. NMLSR Unique Identifier # 163853. 404-847-2525