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When Should You Refinance Your Home?
Refinancing your home is a very important financial transaction that every homeowner needs to take seriously. Deciding on when to refinance your current home loan can be a tough task. I usually suggest that clients wait at least 3-5 years before they do a refinance. However no two situations are the same and every client has different needs. A good way to begin the process of deciding if it’s time to refinance is to sit down with a piece of blank paper and write down your goals for the home over the next 3-5 years.
You never want to refinance your home just because a few years have past and think it’s time to do another loan. As simple as that may sound, many clients (after asking why they are thinking of the refinance) say that exact answer. Some solid reasons people should consider to do a refinance are:
· Home renovations.
· Education expenses.
· Consolidate a large amount of debt.
· Emergency cash is needed.
Another option for homeowners is obtaining as Home Equity Line of Credit or a fixed second mortgage. This is something you should consider if you have a really great first loan. Weighing all aspects of your refinance and understanding the financial implications is essential. Working with a mortgage consultant you trust will enable you to achieve your goals if you choose to mover forward with a new home loan.
Kevin O’Connor
Mortgage Consultant
www.koloans.com
800.550.5538
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