Minette Goldsmith, Senior Loan Officer

It is a great time to consider a Tucson refinance. The Federal Reserve is holding interest rates down and the administration, anticipating the upcoming election, is trying to make mortgage refinancing easier for almost everyone.  When should you refinance your home?  The old rule of thumb was mortgage interest rates had to be at least 1% less than your current interest rate.  But that is not really the case.  It usually makes sense to refinance a large mortgage when there is a smaller difference and smaller loans need a bigger difference.

To calculate when you should refinance, call Minette to discuss refinancing costs and what the current interest rates are for someone in your situation. Minette will review with you the break even time frame for refinancing.  If you anticipate keeping the mortgage loan in place for longer than the break even term, it is a good time to refinance.

Sometimes lenders can cover all the refinancing costs.  Call to check if that is possible in your situation.  If it doesn’t cost you anything and you can save money each month, it probably makes sense to refinance.  You should still check if it makes even more sense to pay some costs upfront or roll the costs into the loan amount.  Many people roll the costs into the loan so they don’t have to come out of pocket.

You might also save money by refinancing your mortgage to consolidate an existing first mortgage and a home equity line of credit. Those lines of credit often had 10 years of interest only payments and then a 20 year amortization period. Refinancing your first mortgage and second mortgage before the amortization period can avoid a large increase in your monthly payment. Lots of people have saved money by refinancing and paying off higher interest rate credit cards.  Other people refinance to access funds for education or other investments.