As mortgage rates hover around the mid-three percent range, refinancing might be a good investment. Here are things to consider before refinancing.
Will I make my investment back? The low interest rate is certainly an important factor, but you also need to think about how much you’ll be paying in fees and how long you plan to stay at your current address. To secure a lower interest rate, you need to pay closing costs, which can include bank fees, appraisal fees and attorney fees, among other things. These costs typically run between one and two percent of your total mortgage balance. Next, you will want to calculate how long it will take you to recoup the closing fees back with a lower rate, as well as estimate how long you will be in the home.
Our Wisconsin Mortgage Corporation loan officers at every Shorewest Office can help you calculate whether refinancing is right for you and answer any questions you may have. Contact them today at wimort.com and take advantage of today’s low rates.