When Should I Refinance
My Home Mortgage?

Many people speak to loan professionals at National Bank Of Kansas City to discuss when to refinance. While the economy and current interest rates do play a role in when you should refinance your home mortgage, the real answers to this question lie in your financial situation and personal needs.

Financially speaking, most all experts recommend you refinance home loans only when you can save more than 1% on your current interest rate. However, you might not be interested in just saving on interest (although, that’s a very good time to refinance home loans.) Here are some other times when you should consider refinancing your home loan:

• You are ready to switch from an adjustable rate home loan to a fixed rate home loan
• You need lower monthly payments on your home loan
• You like the idea of paying your mortgage off sooner rather than later
• You would like to consolidate debt
• You are interested in taking advantage of your equity for home improvements or other large expenses

When Not to Refinance

While choosing to refinance your home is a personal choice, there are some circumstances that will prevent you from refinancing. Here are few examples of times when you should not refinance a home mortgage:

• If you purchased your home less than 4 months ago, then you’ll probably have to wait. Most lenders will not allow you to exit a loan before 4 months have passed. Read the fine print on your existing home mortgage to see the requirements on when you are allowed to refinance.
• If you plan to sell your home in the near future your closing costs may exceed savings from lower monthly payments. Do the math to be certain.

Get a refinance mortgage quote.
Apply for refinance home loans online.
Learn about our other types of refinance mortgage loans.