When to Refinance

When you refinance your mortgage, you are replacing your current home loan with a new, lower interest loan. Homeowners decide to refinance their mortgage for various reasons – to take advantage of lower interest rates, to consolidate high-interest debt and/or attain cash from the accrued equity in their home.

The decision whether or not to refinance depends on several factors, including:

The type of loan you have– If you have an Adjustable Mortgage Rate (ARM) that is about to adjust to a variable rate, you might want to get a fixed rate loan to keep your mortgage payments from rising.

The costs associated with obtaining a new mortgage– There are closing costs and fees associated with refinancing your mortgage, including:

  • Origination charges such as application, title search, appraisal, closing costs, title or escrow fees
  • Loan origination points or discount points to further reduce the interest rate. These can be tax deductible – consult with a tax advisor before you decide to use this option.
  • Some mortgages have potential penalty fees for early payment of your current loan.

Visit our calculators page to see if refinancing makes sense for your current situation.

For expert refinancing advice, please contact a PERL mortgage advisor, visit a location near you or call toll free at 1-888-202-7490.

Learn more about refinancing your current home loan:

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