Should You Consider Refinancing Your Mortgage? | St. Johns Bank
Looking to pay off your home faster? A mortgage refinance might be the way to go. Our team at St. Johns Bank wants to talk you through some basics about refinancing a mortgage.
Mortgage Refinancing 101
People refinance their home for a number of reasons, including:
- Paying off their mortgage faster
- Obtaining a better interest rate
- Withdrawing equity built up in their home
Let’s take a look at how to ensure refinancing your home is worth it.
First, do the costs add up? Refinancing a home is just like purchasing the home for the first time. Therefore, some of the same costs crop up, including paying closing costs.
As a result, if you don’t plan on staying in your home for another five, 10 or 15+ years, it might not be worth it to pay the closing costs all over again just to refinance your home for a short period of time.
Second, if you are looking to refinance your home in order to help pay off your mortgage earlier, you will want to make sure you will not be charged a penalty for paying your mortgage off earlier than expected—even if you are refinancing to do so.
Finally, many people choose to refinance their mortgage in order to take advantage of better offers that allow them to clear off mortgage debt sooner rather than later.
For example, if you currently are in a 30-year loan, refinancing your home to a 15-year mortgage rate could help you own your home faster. In addition, you will be able to build up equity in your home more quickly.
These are all things to consider when it comes to refinancing your mortgage.
Is refinancing your home the answer to savings this year? Visit the St. Johns Bank website today to learn more about the pros and cons of refinancing—and whether it’s right for you!