Refinancing your mortgage could result in a lower monthly payment, especially with interest rates at a near historic low. Here’s what to consider before you decide:
Rule of Thumb
It usually makes sense to refinance if you can save 75 basis points, but consider the whole package, including points paid and closing costs.
Job Stability
With record unemployment numbers in just a matter of weeks, job stability plays a huge role in qualifying for a refinance – even if you have a substantial amount of equity in your home.
Shop Around
Although refinancing is on the minds of many homeowners, check your credit score before you apply. Some lenders are raising their minimum credit score requirements. While its always smart to shop around for the best deal, today’s environment has banks strictly enforcing expanded qualification guidelines.