When To Refinance Your Mortgage

Refinancing your mortgage is not always a savvy decision. The timing of this financial move is highly important. Take a look at your financial situation and refinance only if it is worth the money that you will be saving. You should not refinance unless you are planning to continue living in that home for more than just a few years. If you're thinking of relocating in the next couple of years, refinancing is definitely not a good idea.

If the timing and circumstances seem to make this a good solution then you can proceed with the refinance. Make sure you fully understand the state of your current mortgage including: interest rate, loan terms, credit score etc. Keep in mind that no one can tell for certain where interest rates are headed. Review your credit report for inaccurate items and negative items such as collections, late payments etc.Most lenders prefer that you have payed off any late payments in the last year before you refinance. Consider building up equity in your home to up at least 10% before you refinance.

Refinancing can be expensive and time-consuming. Multiple refinancing can eat up your savings and increase costs so make sure you refinance wisely.