Refinancing can lower the interest rate of your current mortgage by 2-4 percent. However, there are several things to keep in mind while making your decision of whether or not to refinance: Firstly, the current rate is significantly higher than today's interest rate. Secondly, if you're planning to stay at home for at least 4-5 years, then only it makes sense to go for refinancing, in which you pay "points" (a point equals to 1% of the loan amount) and closing cost to get the lowest interest rate.
Lastly, if you've had your current mortgage for at least 3 years, then you can probably reduce your balance by several thousand dollars. It will also result in reducing your closing cost against your new loan- plus, a lower interest rate, and lower monthly payments. Note: if your home loan has a very low rate compared to current interest rates or if you have a prepayment penalty on your loan, you can choose "recasting" or "re-amortization"- an alternative to refinancing.
INSTANT RATE QUOTE
Your circumstances are changing, therefore refinancing is beneficial to
Lower your monthly payment
Change The Loan Program Type
Pay Off Your Mortgage Sooner
Shorten the loan term
Lower your mortgage interest rate
Consolidate your debts
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