<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=4NTNuo_0vXtbD7600" alt="https://img.particlenews.com/image.php?url=4NTNuo_0vXtbD7600" width="970" height="550" ><figcaption>Image via iStock.</figcaption></figure><p>WSFS Bank offers some considerations to help you evaluate when might be the right time to refinance your mortgage.</p><p>Interest rates have continued to impact many aspects of consumers’ lives in recent years. After record-low rates early in the pandemic gave way to mortgage rates higher than they had been for more than a decade, many homebuyers and sellers have been left on the sidelines.</p><p>Homeowners who were able to lock in their rate during the record lows may be looking to stay put. But those who missed that opportunity often find themselves wondering when is the right time for them to refinance their mortgage?</p><p>Here are considerations to help you evaluate when might be the right time for you:</p><h2>Review Rates, Terms, and Closing Costs</h2><p>While we’re unlikely to see mortgage rates reach those same record lows from just a few years ago any time soon, rates are expected to begin to decrease soon. But deciding when to refinance involves more than just searching for a lower rate.</p><p>If you are <a href="https://www.wsfsbank.com/personal/borrowing/mortgages/refinance/?utm_campaign=KnowledgeCenter&amp;utm_content=Paid&amp;utm_source=Vista">ready to refinance</a>, keep an eye on the average interest rates and set up time to speak with your lender about your options. While a decrease of .5 percent may not seem like a lot, if you’re currently locked in at 7 percent, a drop to 6.5 percent could help you save a significant amount over the life of the loan, depending on your situation.</p><p>Your lender can also help you evaluate loan terms to see what makes the most sense for you. Depending on your financial goals, this could include refinancing into a mortgage with a shorter term. While this can result in increased monthly payments, it can also help you save on interest over time, so there are tradeoffs to doing so.</p><p>Another thing to consider is how long you plan to stay in the home. Refinancing comes with closing costs, so if you don’t plan to be in the house for at least a few more years, it may not be worth it. Calculating your break-even point from those costs can help you make an informed decision. </p><h2>Evaluate Your Property Value and Equity</h2><p>Property values have risen dramatically in recent years, so it is important to have a clear picture on the current estimated value of your home as well as the equity you have in it.</p><p>Building more home equity can also result in better terms when refinancing, so if you’ve been in your house for a few years and the value has also increased, it could be a good idea to explore your options if the rates drop.</p><p>If you didn’t have the upfront funds to make a 20 percent down payment when you first purchased, you likely needed private mortgage insurance (PMI). Even if it is not the right time for you to refinance, keep a close eye on your equity level, as you may be able to eliminate your PMI once you’ve built up enough equity to help reduce your monthly expenses.</p><h2>Get Your Finances in Order</h2><p>Just like when you’re purchasing a home, it is vital to have your finances in order and your documentation ready when refinancing.</p><p>Your credit score is just one item your lender will evaluate when making their decisions on rates and terms. Working to <a href="https://www.wsfsbank.com/resources/national-credit-education-month-tips-to-improve-your-credit/?utm_campaign=KnowledgeCenter&amp;utm_content=Paid&amp;utm_source=Vista">improve your credit score</a> through on-time payments and responsible credit utilization for your mortgage, credit cards, and other loans can help improve your score and result in better terms for future loans.</p><p>Your debt-to-income ratio will also be evaluated and helps lenders determine your ability to repay the loan. Working to reduce your total debt over time can help this ratio and improve the rates you’re offered in the future.</p><p>There are many factors to consider when determining the right time to refinance in addition to just the current interest rates. <a href="https://www.wsfsbank.com/personal/borrowing/mortgages/contact-us/?utm_campaign=KnowledgeCenter&amp;utm_content=Paid&amp;utm_source=Vista">Scheduling an appointment to talk to your lender</a> can help you determine your options and when is the right time to refinance for your financial situation.</p><p>______________</p><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1iJrKr_0vXtbD7600" alt="https://img.particlenews.com/image.php?url=1iJrKr_0vXtbD7600" width="406" height="436" ></figure><p><a href="https://bucksco.today/tag/Jeffrey-Ruben/">Jeffrey M. Ruben</a> is the President of <a href="https://bucksco.today/tag/wsfs-mortgage/">WSFS Mortgage</a>. He joined WSFS through its acquisition of Array Financial, a full-service mortgage banking organization, and Arrow Land Transfer in August 2013. Ruben formed Array and Arrow in 2005, having previously held senior executive roles at financial and legal institutions. He is also a licensed real estate attorney.</p></div></body>

Mountain View, CA

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Refinance Ready? Key Considerations for When to Refinance Your Mortgage

WSFS Bank offers some considerations to help you evaluate when might be the right time to refinance your mortgage. Interest rates have continued to impact many aspects of consumers’ lives in recent years. After record-low rates early in the pandemic gave way to mortgage rates higher than they had been for more than a decade, many homebuyers and sellers have been left on the sidelines.