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When is it a Good Time to Refinance Your Mortgage?

If you’re considering mortgage refinancing you might be wondering if it’s a good time to refinance your home.  The blog Free From Broke urges caution, that refinancing must be done with great caution because not every situation will have the desired outcome.

For many of us who are mortgage holders from time-to-time we find ourselves asking, “When is a good time to refinance my mortgage?” Hardly a day goes by without noticing many lenders advertising tempting deals to entice you to refinance your mortgage.


There are a number of good reasons for refinancing your home loan and not all will result in lowering your monthly payment. Ideally, your new mortgage rate will be less than your old rate; however, if you’re cashing out equity for any reason you could wind up with a higher payment. Some financial advisors quote the two percent rule of mortgage refinancing which states you should never refinance unless the new mortgage rate is at least two percent lower than your old rate. This is simply bad advice no matter how you slice it. Instead of evaluating your situation on a blanket two percent it makes more sense to check your mortgage refinancing decision based on how long it will take you to recoup your expenses. Every home loan comes with closing costs and fees so if you get a lower payment you’ll have to recoup your expenses before realizing any savings. If the amount of time it takes to recoup these expenses is acceptable to you then refinancing your home mortgage is probably a good idea.

If you’d like to find the best refinancing company for your next mortgage refi check out my free Underground Mortgage Refinancing Videos. You’ll discover how easy it is refinance with wholesale rates without paying lender junk fees. These mortgage videos have been viewed by over 300,000 homeowners just like you and save the average family $1200 a year!

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