When is the best time to refinance your home?


Is mortgage refinance a good idea?

Through the first two quarters of 2019, mortgage rates have been on a consistent decline, dropping to their lowest levels in over 3 years.

Although they have dropped, mortgage rates are not the only factor in considering a refinance for your home. Generally speaking, the factors to look at in determining if a refinance is beneficial for your financial situation include:

  • Ability to refinance your fixed-rate mortgage into a lower fixed-rate mortgage rate through a zero-closing cost refinance

  • Market conditions provide a financially beneficial opportunity for you to refinance. Market conditions are not just a lowering of mortgage rates — a rise in local home values could also create opportunity for you to benefit financially.

  • If you have positive equity in your home, your financial picture could improve drastically through a cash-out refinance. A cash-out refinance can be used to consolidate debt, make home improvements, or assist with unexpected financial emergencies.


At the time of this article, the market is currently experiencing optimal conditions with rates dropping drastically and home values reaching historic highs, setting up a refinance boom opportunity for Americans.

No matter what current market conditions are, it is always wise to consult with a licensed professional to determine what makes the best sense for your individual situation. A licensed professional has a fiduciary duty to advise you on what options are beneficial for your financial outlook — even if that means taking no action at all.

Your best course of action, whether refinancing your existing home or purchasing a new home, is to execute your right to receive a no-obligation review of your situation and get a quote for rate.

If you would like to schedule a 30-minute review, fill out the information below and a licensed professional will get in touch with you within 24 hours.

What exactly is a refinance?

Refinancing a mortgage, in short means replacing an existing mortgage loan with a new one. In a refinance transaction, the principal balance of the existing loan is paid off using the new loan.

When the refinance is complete, your old loan is replaced and your new mortgage terms take effect.


There are many reasons to refinance.

Sometimes, a homeowner refinances to take advantage of positive changes in market conditions, such as a change in today’s mortgage rates or a rise in local home values. A new mortgage can give lower mortgage rates or payments to the homeowner, and may also be able to remove private mortgage insurance (PMI) payments.

In some cases, a homeowner may refinance to take “cash out” for a home renovation project, liquify assets for financial needs or out of legal necessity, such as divorce where removing a spouse from a mortgage loan is required.

The two most utilized reasons to refinance, of course, are to lower mortgage rate and to lower your monthly payments.

In considering a refinance it is vital to determine your desired outcome first — what would you like to accomplish? Next you’ll want to meet with a licensed professional to review all of your available mortgage refinance options.


For example, if your current home loan is an FHA loan, you could potentially refinance with an FHA Streamline Refinance, which does not require verification of income, assets, or credit; nor an appraisal of the home — items that may be factors in determining your best possible outcome.

VA Streamline Refinances carry some of the same benefits, so if you are a Veteran, you may want to explore your options there.

Alternately, you may be in a better financial position by removing mortgage insurance from your monthly payment.. You could look at refinancing into a conventional mortgage which might allow you to get rid of costly FHA mortgage insurance from your payment.

Whatever your situation, be sure to explore all your options and make an informed decision with a licensed professional that will help navigate you through the process from start to finish.

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James PolinoriComment