Is Refinancing Right For Me?
Refinancing isn’t always a good idea for everybody. In some cases it may be cheaper to stay with your current lender and restructure your current loan.
Do you have less than 20% equity? If so, then you will have to pay Lenders Mortgage Insurance all over again which could add thousands to your loan. Let us work out whether this is still cost effective for you.
If you are considering moving loans it is important that you check to see if your current lender has any hidden exit costs – such as a deferred establishment fee or a break cost if you are currently on a fixed term.
Also consider how many years of your original 30 year loan term you have already paid off. Refinancing may not be beneficial if you have already repaid 5 or more years of your loan.