For some people, there is a thin line between good and bad debt-specifically when it comes to mortgages. Mortgage rates have been on the rise lately, and if you’re not careful, you could find yourself paying your home finances more than you need to be. If you’re uncomfortable with your current interest rate or think there might be a better deal for you, it’s time to start thinking about refinancing. Now you may still be wondering whether it’s the best time to refinance your mortgage. That’s why we’ll discuss the top signs that refinancing is right for you.
Higher Interest Rate Than the Current Market Rate
One of the most obvious signs that it’s time to refinance is if your interest rate is much higher than what’s available in the current market. Mortgage rates change all the time, so even if you secured a good deal when you first purchased your home, chances are there are better deals out there now. In fact, with current mortgage rates being so low, now is an especially great time to refinance if you haven’t done it already.
Enough Home Equity
To successfully refinance your mortgage, you need to have a certain amount of equity in your home. This means that the current market value of your home must be greater than the remaining balance on your mortgage loan. If you do have enough home equity, refinancing can help you take advantage of lower interest rates and save money over time. Many times, people …