Why Waiting to Refinance Your Mortgage is a Bad Idea

In this current economic period, waiting to refinance your home mortgage could be disastrous. I hear it many times per week, “We are just waiting for the market.”, or even worse, “We are eventually going to move, so why refinance this one?”

How Not Refinancing Now Could Be Disastrous for Your Finances

The truth of the matter is, refinancing your mortgage now, not only is likely to save you thousands of dollars, it’s also going to help you save significantly more money now than if you were to wait some time.

Interest rates right now are low. In previous years they have been much higher, but for the moment are considered pretty low. Thus, any change in interest rates is most likely going to be in the direction of up and not down.

This then means that if you have a 4{d2e84fe275b877cb79b3d62d0c66ddba57f7ac3b8528030a0574b5ea4eaa44cd} interest rate now then you could be able to refinance your mortgage for 2 or 3{d2e84fe275b877cb79b3d62d0c66ddba57f7ac3b8528030a0574b5ea4eaa44cd}. There would be enormous financial incentive to do so, but if you were to wait, you might want to refinance your home a year from now and you might only qualify for a 5 or 6{d2e84fe275b877cb79b3d62d0c66ddba57f7ac3b8528030a0574b5ea4eaa44cd} interest rate. Of course that isn’t something you want to do, but just how much money are you losing?

How Much Money Are You Losing by Not Refinancing Your Mortgage Now

Of course switching from a higher to a lower interest rate makes sense. As long as you taking into account the closing costs and the additional payment that you save, usually refinancing your mortgage can result in a good deal.

However, if you wait now and interest rates rise, then you could be missing out on hundreds of dollars every month in savings. Waiting for these interest rates to change is not going to be good for your cost savings. In addition, you might as well refinance if you are planning on moving because it will put you into a lower payment and when you do sell, you’ll still get the price for the house that you agree with the seller on.

There is a lot of options to refinancing your mortgage and not all are the same for everyone. Thus it’s recommended you should still seek the advice of a trusted mortgage professional and make the decision that is right for you.