2025 - Is this the year you refinance your home loan?

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Издатель Jan 14, 2025

The question comes up all the time and that question is "Should I refinance my mortgage now or should I wait for interest rates to come down more?" It is important for you to consider the following details BEFORE you consider refinancing your current home loan:

1. The average 30 year mortgage fixed interest rate is around 6.9%.
2. The average homeowner who has a mortgage on their home has an interest rate of 5% or less.
3. Most people want to refinance their home loan when the current interest rates are lower than the interest rate on their current home loan. This way they can either save money each month with the lower interest rate or reduce the number of years remaining on the home loan and get the home paid off sooner.

If the above examples sound similar to your motivation than the answer is NO, you should NOT refinance your current loan because your monthly payment will go up not down due to the higher interest rate.

Here is an example of when someone might consider refinancing even if the interest rate is higher:

Lets say the home owner has a 5% interest rate on their mortgage but they have a massive amount of credit card debt at 24% interest and the monthly payment is killing them every month. If they refinance the credit card debt into their mortgage (providing they have enough equity) and they can save significantly, it might be worth looking into a refinance. However, sometimes it makes more sense to keep the low interest rate on your existing mortgage and explore adding an equity loan or a home equity line of credit (HELOC) because the interest rate on those loans would be more affordable than the current interest rate on their credit card.

If you have questions just add a comment below - I answer 100% of the real questions.

Thanks for watching!

Sam Miller
REMAX Stars Realty
710 South Main Street
Mount Vernon, Ohio 43050
Call 740-397-7800
http://www.SamMillerSells.com