|
Refinancing Basics
When refinancing makes sense (and when it doesn't)
Refinancing isn't always the right move, even when rates drop. The real question is whether the long-term benefit outweighs the cost of closing a new loan. Some people refinance to lower their monthly payment or shorten their loan term. Others use it to switch from an adjustable rate to a fixed one, or to tap into home equity for a major expense. But if you're planning to move in a few years, or if your closing costs would take too long to recover through savings, refinancing might just add unnecessary expense. The key is running the actual numbers for your situation—not the general case, but your specific loan, timeline, and goals. If you're wondering whether refinancing makes sense for you, I'd be happy to walk through the numbers together.
|