When to Refinance

Home Refinancing When to Refinance

Is it Worth It? Why Even Consider Refinancing?

If you ask ten people if you should refinance, you are going to get ten different answers. Many will say you should only refinance if the interest rate is at least two points lower than your existing one. Most will give you their two cents based solely on their personal refinance experience.

In today’s economy, many factors go into determining whether a refinance makes sense for you or not. Refinancing your loan has a variety of benefits that will often make it worth the initial expenditure. On this page, you will see the most common reason people choose to refinance their homes. 

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  • Fixed Mortgage Rates


Other than qualifying and obtaining your initial home loan, refinancing your home, maybe the largest financial decision you ever make.  There is no question that it is a decision that has both pros and cons, multiple options, and reasons to consider. We want to help bring clarity to this scenario. 

Refinancing your home has several advantages including;

  • Reduce your interest rate
  • Reduce your monthly payment – sometimes considerably
  • Get cash out for home improvement and other aspirations that require cash such as vacations or investments.
  • Consolidate
  • Shorten your term.

Fees and Expenses

Of course, you will have to pay for your the refinance process. You’ll have to pay the same kinds of expenses and fees as you did with your current home loan. These probably include settlement costs, appraisal fees, lender’s title insurance, underwriting expenses, and so on.

Do the Math

You might investigate paying points to receive a lower interest rate. Your savings over the life of the mortgage may be substantial if you’ve paid up front about 3% of the new loan total. We recommend that you talk to a tax professional before acting on rumors that any points paid can be deducted on your federal income taxes.

Another thing about taxes is that once you lower your interest rate, of course you will also be lowering the interest amount that you’ll be able to deduct on your federal income taxes. This is another expense that some borrowers consider. We can help you do the math! Call us at (401) 583-4150.

Most people find that the monthly savings quickly outweigh the initial cost of a refinance. We can help you explore your options, considering the effect a refinance may have on your taxes, whether you are likely to sell your home in the next couple of years, and your available cash. Call us at (401) 583-4150 to get you started.


With over 20 years of experience, we ensure you get the best service you deserve.

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