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When Does It Make Sense to Refinance Your Mortgage?

Your home is one of the most important investments you make in your entire life. But did you know it can also help you reach your future financial goals?

By refinancing, you can change the terms of your mortgage to pay off your loan sooner, lower your monthly payment, consolidate debt, or even take some cash from your home’s equity to use for home renovations or other expenses.

Is refinancing right for you? Our knowledgeable mortgage professionals are here to guide you if you need guidance.

Reasons to Refinance Your Home

  • Access cash: If you have built up equity in your home, you can turn that equity into cash. Use it for any expense, including high-interest credit cards, home repairs, college tuition, and medical fees.
  • Pay off your mortgage sooner: Refinancing your mortgage to a shorter term will allow you to apply more of your income toward your loan principal each month and pay off your mortgage sooner.
  • Lower your monthly payments: Maybe your income has decreased or you want to increase your savings for college or retirement. By extending your loan term, you could lower your monthly payment.
  • Pay less overall for your mortgage. By refinancing to a shorter-term and/or reducing your mortgage interest rate, you could pay less interest over the term of your loan
  • Recover from unexpected events: If your personal life has changed due to marriage, divorce, a medical emergency, or other personal reasons, refinancing can give you the flexibility needed to continue your financial wellbeing.
There are a lot of factors to consider when you are making decisions about your mortgage. So how do you decide if refinancing is right for you?

Determine Your Financial Goals

Think about the future. What do you want to accomplish? Are you working towards being debt-free? Do you want to save more for retirement or save money in the short term? One of our qualified mortgage professionals can help you determine the best course of action to reach your goals.

Consider the Timing

Are you planning to sell your home? Is retirement on the horizon? Maybe you need to save for a child’s college education? Some time frames are better than others, so it’s crucial to understand when refinancing makes the best sense.

As you can see, a mortgage refinance can be an excellent tool to help you reach your financial goals. However, you may still have questions about refinancing or want to learn about your options. Reach out to us with any questions or concerns you may have.

If You Decide to Refinance, We Can Help.

Documents you may need when you apply to refinance. For a full list, please download our mortgage refinance checklist.

  • Employer(s) name, address, and phone number for the past 2 years
  • W-2s for the past 2 years
  • Pay stubs covering wages for the most recent 30-day period
  • If self-employed, the last 2 years’ signed and dated personal and business tax returns (if applicable) with all schedules attached
  • Most recent 2 statements for all deposit accounts—checking, savings, investment, IRA, etc.
  • If you currently rent, the landlord’s name and address for the past 2 years
  • Copy of your most recent mortgage statement
  • Copy of the deed (legal description)
  • Copy of your most recent tax bill and homeowners insurance bill
  • Condo Association Dues (if applicable)
There are a lot of reasons to refinance your home. Whether that is shortening your payment terms, reducing your monthly payment, or taking out cash for other debts, our team of experienced professionals is here to help you find the best options for refinancing your home.

If you have any questions, feel free to reach out to our team of experienced mortgage experts to help guide you through the process.