Mortgage rates are hovering near record lows and it’s likely your mailbox has been filling up with refinance offers. So how do you know if you should refinance or not? A lower rate sometimes isn’t all it’s cracked up to be, but sometimes is everything you need. In this video, Kevin presents specific criteria you should consider when making your decision.
Reason NOT to Refinance
– Restart your amortization schedule and potentially never pay off your loan
– Interest rate reduction not enough to offset closing costs
– You plan to move in the future
– Do you have enough cash to cover closing costs and escrow pre-paids?
– It’s a big pain to pull all of the documents and run your credit reports
– You have the ability to pay extra principal, effectually reducing your overall tax accrual
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this video will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 07/28/2020 and are subject to change at any time due to the changes in market or economic conditions.