Tips on how often you can refinance a mortgage. and whether or not refinancing is feasible for your present situation; tips on how to do a break even analysis to see if it is worth it.
Refinancing a mortgage can be helpful if you want to lower your monthly payment and take advantage of lower interest rates that may be available at the time. Sometimes refinancing can be very helpful and other times it can cost you more than it is worth. If you are considering refinancing your mortgage you may ask how many times I can refinance my mortgage in a given time. The answer may surprise you.
How Many Times Can I Refinance My Mortgage?
When it comes to refinancing your mortgage you can do this as many times as you like as often as you like. Whether you just refinanced a few months ago and interest rates have dropped again, you can always refinance to take advantage of the current market. Finding out whether or not this will benefit you is
the key factor in determining whether you should refinance or not. If it will lower your monthly payment and interest rates, then the benefits to you will be worth it. But, you must take into account the closing costs associated with refinancing. Closing costs can include such things as title fees, origination fees. taxes, recording fees and appraisal fees. These costs can quickly add up.
There is a method a your mortgage loan specialist can do for you to determine if refinancing your mortgage will be financially beneficial to you and it is called a break even analysis. The loan specialist will use a formula to calculate the costs of refinancing you mortgage and determine if you will come out ahead or if you will end up losing money on the deal. To do this they divide the closing costs by the monthly savings to determine the number of months it will take to break even. Talk to your loan specialist about refinancing your mortgage to determine the best option for you.