Weighing the Pros and Cons
Refinancing can be an attractive proposition if you can justify the savings. Typically refinancing means lower monthly payments, which many people are drawn to. And some will argue that yes, you should refinance again even if you recently refinanced, especially if it puts you in a better financial position.
And if you’re in doubt, it’s smart to follow the golden rule: According to Ben Edwards at Money Smart Life, if interest rates are 2% lower than your current rate, you should consider a refinance.
Each situation will be different, and there are pros and cons to both sides of the argument. We’ve presented the facts to help you make the decision. Most importantly, be sure to make the decision that is right for you. It’s hard not to get wrapped up in what your brother, neighbor, or boss says. Please do your own research and use the tools we’ve provided to help make the decision.
Also, be sure and not to make the mortgage refinancing mistakes previously discussed. Many people do not refinance because they can’t see the benefits right away. Typically, with a refinance, the savings happen over time, and you have to be patient to reap the benefits.