I’m thinking of refinancing my mortgage. Is it worth?
It is important to know that refinancing can cost between 2% to 5% of a loan’s principal and it requires an appraisal, title search and application fees. With that said, it depends on your situation. Refinancing a mortgage can help you reduce your interest rate by at least 2%, but many lenders say reducing it by 1% is enough to refinance. You should also consider refinancing when interest rates drop so you can shorten the term of your mortgage and save money on interest. Switching to a fixed or adjustable-rate mortgage can also be a good idea depending on rates and the amount of time you plan on staying in your current home. Additionally, another good reason to refinance is if you want to tap equity or consolidate your debt, but sometimes it can make your debt worse so you should be careful when making the decision.
Overall, it depends on your situation and your motives behind refinancing.