When to Refinance Real Estate

Refinance if you have an Adjustable Rate Mortgage (ARM) and you think the interest rates may take a big increase. In inflationary periods, interest rates rise and you could face big payment increases.

Refinance if you purchased your home when the interest rates were high and you're going to remain in the home for a few more years.
Compare the cost you will pay in loan origination fees and closing costs to what you will save in interest.

Refinance if your loan has a balloon payment coming due and you have decided to keep the house.

Balloon payment loans are set up to allow you to pay a lower rate in the initial phase and then pay a lump some after a few years. These loans are beneficial when you plan to sell your home before the balloon. If you change your mind - refinance.

Refinance if you're in an interest-only loan and the value of your home is decreasing.

You can quickly lose money - and lose your home in this situation. Refinance as soon as it becomes apparent that the housing market is on a downturn.

Use a mortgage calculator to decide if refinancing your real estate is the right move for you.