Refinance Now or Wait? The Pros and Cons of Refinancing

By Michael Durr

"Mike is a total pleasure to work with! Great lender who explains everything thoroughly and gets you into a product that works well for you. Highly recommended!!" - Tyler Tomek

Could refinancing my home really save me money? Now that rates are anticipated to go down in the next couple of months, many homeowners are considering whether to do it now or wait. There are good reasons why refinancing within the next 30 days is a good idea. At the same time, you also need to be aware of some of its downsides. Let me share the pros and cons of refinancing in today’s market.

There are two main reasons why refinancing now is a good idea. First, you can save money if you purchased a home in the last few years. Refinancing is usually permanent, potentially saving you a few hundred dollars or more. I recently helped one of my clients work on a deal where the borrower saved $700 a month. Second, interest rates are predicted to go down in the next 30 days. But we don’t know for sure, and they might not go down as much as we had hoped. So, refinancing now could be a better move to maximize your savings.

Some of you might be thinking about refinancing now and again later. My concern is that refinancing costs money, and you lose some equity each time. Take it from someone who’s refinanced their own home multiple times—you only do it when you need to, whether to take cash out or lower your rate. You can refinance multiple times, but be aware of the costs.

Another downside of refinancing is that most people roll the closing costs into the loan, but by doing that, you lose some equity. It also does not guarantee that this will be your final refinance. When you decide, weigh the costs against how long you’ll be on your property and whether the savings you’ll get are worth it.

Hopefully, this helped you understand and grasp how you want to proceed with refinancing your home. Again, we expect rates to go down soon, but we don’t know by how much, but we can help. If you’re interested in saving money, lowering your interest rate, or reducing your expenses, call me at (281) 348-9899. Let’s figure out if refinancing makes sense for you right now.

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