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 Questions
to Consider when Refinancing
When considering whether to
refinance, you need to consider the
following questions:
What are your reasons for refinancing?
How long do you plan to stay in your
home?
How much equity do you have in your
home?
What is the interest rate of the
existing mortgage?
What is the interest rate of the new
mortgage?
What is your current income and credit
status?
How much will it cost to refinance?
How long will it take you to recoup the
cost of refinancing, and is it an
acceptable period of time? |
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Learn More
Should you refinance?
Consider your refinancing options
Examining and understanding benefits of
refinancing
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If you're refinancing to lower the
monthly cost of your mortgage, keep in
mind that you may need to stay in your
home for several years to recoup the
cost of refinancing. To estimate the
amount of time it would take to recover
refinancing costs through a lower
monthly mortgage payment, use our
Refinance
Calculator, or simply
divide your total refinancing cost by
your total monthly savings. For example,
if your refinancing costs will be
$2,500, and your monthly savings will be
$100, then you'll need to stay in your
home 25 months or more (2,500 ÷ 100 =
25) to recoup the cost of refinancing. |
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