Many people look to refinancing as a method of reducing monthly payments, taking advantage of low interest rates, pulling equity out for repairs and remodels, or consolidating first and second mortgages. And while refinancing can be a wise move, it’s not always the right time to make that move. Here are some instances in which you should avoid refinancing. If You Plan To Move Soon When you refinance, you will have to pay closing costs on the new loan, which take away from the financial benefits. So, if you’re refinancing to lower your payment, consider how long you plan to stay in the house. If you’re planning to move in the near future, those closing costs may not be recouped before you move on. Do the math quickly—how much are the closing costs and how much will the refinance save you each month? Add up the monthly savings until you reach the closing cost amount, and you’ll know how many months you have to stay in the house to break even. If you expect to move before that time, the refinance won’t save you money. If Your Credit Needs Work If your credit score is not as good as it […]
Read More