Refinance or not to Refinance – Top Ten Considerations

describe the imageOne thing is for sure, if you have the right situation that works for you and your family, then you can greatly benefit from refinancing your home mortgage loan. The best way to figure out whether you, in particular, are in that situation is by talking to professionals and comparing mortgage rates and program; we do that for you here at Delaware Financial Capital Corp.

Did you know that everyday hundreds of people here in Delaware who refinance their home mortgage?  If you have the right situation refinancing your home mortgage can be the smartest financial decision you make this year.  Check out the top ten considerations in deciding whether to refinance or not to refinance. First, you have to determine if the fees and time it takes to refinance are going to be worth it for the amount of money you will save?

  1. Will refinancing my home lower my rate?
  2. Can I reduce my term or shorten the duration of current loan term?
  3. Do I have enough equity to take cash out, to pay for a home improvement, education, or some other worthwhile family endeavor?
  4. How long it will take me to recover my closing fees?
  5. Will rates get any better?  Or, can the bond market be timed?
  6. Is my mortgage an adjustable ARM?  Should I do a fixed rate loan why rates are this low?
  7. Will the process be overwhelming?
  8. How long will I be in my house?
  9. Can I consolidate some credit card debt using my home equity and create a lower payment and a tax advantgage?

There is a continuous change in the mortgage industry used to determine if your refinance loan makes both dollars and sense; such as, interest rates, your house value, credit rating, current equity and debt standing.  These things may make any possible now for you to consider a new favorable refinance loan.

  1. Take advantage of a lower interest rate
  2. Shorten or lengthen the duration of your loan
  3. Lower your monthly payments
  4. Get cash out
  5. Lock in a fixed rate while they are still low

It’s Alright to have Concerns about Refinancing

Just as with the creation of any other new loan there are fees associated with refinancing your home mortgage. Depending upon how long you have been paying on your current loan, the interest vs. principle pay down will be a consideration.

You also consider how much longer you will remain in your home. If you are going to save $2,400  a year by refinancing, but you have to spend $4,000 to get it the refinance done,  then you will have to own that home for at least almost two years to realize any savings on that level, which is a very good return.

Overall consideration should include not only payment, but total interest reduction, which can be significant in today’s interest environment.

Regardless of any of these concerns, if your situation is correct, you can save a ton of money by refinancing your current home mortgage loan. Do the research by comparing mortgage rates with us, time is of the essence and it may not be in your favor, but why?

Mortgage Rates Can Go Up Quickly

When will rates begin to tick up?  The answer is quite simply; no one knows, but we are sure it is just a matter of time before we see rates begin to tick up.  Rates have a tendency to go up a lot faster than they go down. 

Pressure on financial institutions, corporate earnings, taxes, and the ever lying snake in the grass, “Inflation” will be the culprits to the return of higher interest rates.

How Can You Be Sure My Rates Won’t Change?

Our loan locks are good for 60 days and our prices reflect a 60 day lock.  We don’t low ball our rates by quoting rates for 10 or 15 day locks just to get you into our grasp, that’s not what we are all about. We’re upfront and will fully disclose all fees. 

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Begin your search to refinance your home mortgage today by doing your homework, and find a loan that is right for you.

Start now by giving us at (302) 266-9500 or simply click the button below to contact Sam.


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