Have I Missed the Window to Refinance?

Our team has been getting this question a lot this week so I wanted to share my thoughts with you. In short, the answer is yes and no!

I know that’s a frustrating answer but bear with me… I am going to share the logic behind this answer and also some questions to consider that will ultimately help guide you to the right answer.

All financial decisions, especially those as big as purchasing, selling, and refinancing a property, should be made after considering YOUR exact situation. There is never a “cookie-cutter” or one-size-fits-all answer to such a huge decision.

The very first and most important question to think about is …

What is the WHY behind the refinance?

By this I mean, what is your reason, your goal, and/or the benefit of refinancing right now?

Here are a few of the most common reasons why people refinance:

1) You want a lower monthly payment

2) You want a lower interest rate so that you can pay less over the life of the loan

3) You want to pull equity out of the property

Of course, your reason can be any or all of the above. There is absolutely no right or wrong reason for wanting to refinance but it helps to know your reason so that we can understand the total picture when evaluating the cost versus benefit. Now that you’ve identified your “why”, let’s talk about a few other things to consider.

Other factors to consider before refinancing:

1) How much will it cost me to refinance?

2) Am I going to “bring money to the table” to do the refinance?

3)What is my credit score?

4) Are there any other big commitments to consider (e.g. a kid heading to college, a business, etc.)?

5) Do I have a partner that I need to consult with and/or whose financial position also has to be considered?

Do the numbers make sense?

So as you can see, it all boils down to the numbers and that’s why refinancing is a very personal decision that should only be made after considering all factors.  In many cases, especially in a market like today, there are a lot of benefits to refinancing and this is definitely a process that we can assist you with.

Within just a few minutes, we can gather enough information to help you make the best decision. If together we determine that it doesn’t make sense financially, we won’t let you do the refinance – at least not with us. Our priority is to protect you and put your interest first, always.

Keith McLaurin | Licensed Commercial Broker ID#01190109 / NMLS#1209195

Phone: (858) 324-1951 | To schedule a meeting or call, click here.