Refinancing will require time, effort and money, so you'll want to do it when you'll reap the most benefit. So when is the best time for you to take the plunge? Consider the following:
- Can you reduce your interest rate by at least 1%? Many lenders suggest that this is a good benchmark for improving your financial situation by refinancing.
- Do you plan to stay in your home for several more years? You will need to recover the costs to close for your new mortgage. Costs to close can generally be estimated as 3% or more of your loan amount. You can also use one of our financial calculators for an estimate of what your refinancing costs will be. Then you'll be able to determine whether you are better off refinancing.
- Do you have good credit right now? It's well worth the wait for you to spend the time and effort to correct any negative information on your credit report. When you improve your score, you will get a lower interest rate. This could save you a significant amount of money over the long run.
If you think that it's the right time for you, we're here to help. Speak to a BB&T Mortgage Professional about how you might benefit from refinancing.