Source: CBS News —
With a new calendar year underway many Americans may be considering ways to both make extra money and cut corners to help save. Fortunately, there are multiple ways to access extra cash, save on insurance types and even cut lingering holiday debt.
One traditional way to reduce costs tied to existing debt is refinancing. Whether you have a personal loan, student loan, or home loan, refinancing can potentially save you money both short-term and over the life of your loan. It can also reduce the term of your loan so that you can use the money elsewhere.
Mortgage refinancing, however, isn’t beneficial for all homeowners. In the current rate environment with rates hovering around 6%, there are only select homeowners who would benefit from acting. You can easily find out if you’re one of them by answering a few quick questions here now.
Why you should refinance your mortgage in 2023
There are three primary types of homeowners who may benefit from refinancing their mortgage now. Do you fall into one of these categories?
Homeowners who can get a lower interest rate
Mortgage rates fell to historic lows during the height of the coronavirus pandemic in 2020, prompting many homeowners to refinance their existing mortgages. With that being said, there may still be an opportunity for current borrowers to act. It’s generally considered beneficial for homeowners to refinance if they can drop their existing interest rate by a full percentage point. So, if you have an interest rate of 7% or more now – and have a good credit history that would support refinancing – then it may make sense to act.
