Amber Kovarik from Caliber Home Loans is here today to discuss refinancing your mortgage. How do you know if refinancing is right for you?
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Today I’m here with Amber Kovarik from Caliber Home Loans to discuss refinancing.
Many people aren’t sure when to refinance. If you are considering refinancing, the biggest thing to consider is your monthly savings. You should also pay attention to whether or not you can reduce your mortgage term. For instance, can you turn your 30-year fixed mortgage into a 15- or 20-year fixed mortgage?
Of course, most people consider refinancing due to a reduction in interest rates or a reduction in mortgage terms. You may also consider refinancing in order to eliminate mortgage insurance. We have seen a lot of appreciation lately, and buyers who put 3% or 5% down payments down may no longer require mortgage insurance.
Refinancing can eliminate mortgage insurance.
If this is the case, you can either take a conventional loan with mortgage insurance and turn it into a conventional loan without mortgage insurance, or you can convert an FHA loan with mortgage insurance into a regular conventional loan.
Finally, if you have an adjustable rate mortgage, now may be a great time to lock in a 30-year fixed rate mortgage while interest rates are still at all-time lows.
