Question:

When is it a good time to refinance?

Answer:

Refinancing is simply replacing one loan with another. Any time there is huge potential for savings, it is a good time to refinance.

Best Time To Refinance

  • If rates are dropping, even a half percent drop in the rate is signifying potential savings through a refinance.

    Talk to a loan officer and use some already developed calculation tools to show you whether refinancing costs will be higher than the savings. If calculations show that the break even occurs within a couple of years, it may be a good time to refinance.

  • Your equity increased.

    If your home is located in a high appreciation area, you are a lucky homeowner. Building equity with no effort poses a temptation to refinance.

  • Improving credit score is another reason to attempt refinance.

    Credit score is difficult to repair - bankruptcy, foreclosure and late payments can stay from 7 to 10 years. However, with time and some efforts towards repaying debt, including professional credit repair help, the borrower's credit may rise to levels high enough to make it a good time to refinance. If borrower's income had increased, coupled with improved credit time, a refinance may help them get much better rates due to higher credit and better debt-to-income ratio.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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