9 Things to Know Before You Refinance Your Mortgage

The article explains that while low mortgage rates may prompt homeowners to consider refinancing, the decision should be based on personal financial circumstances rather than just current rates. Nine key factors are highlighted before applying for a home refinance including home equity, credit score, DTI ratio, and refinancing costs. It is essential to calculate breakeven points, understand the impact on taxes, and consider if refinancing is suitable with little or no equity. Various government programs may assist homeowners with low equity. Other important considerations discussed include interest rates, points, loan terms, and the impact on monthly payments and total interest paid. Changes in tax laws could also affect the benefits of refinancing. Closing costs, credit requirements, and the timing of refinancing are also covered. The complexity of mortgage refinancing necessitates careful research and consultation with a lender to make an informed decision.