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Interest rates are at historic lows. There are many things to consider when thinking about refinancing, here are a few:

  • Look at the current terms of your mortgage
    • Length of your loan, current interest rate, whether you have a fixed or variable interest rate, and what your current monthly payment is
  • Reasons to refinance
    • Lower interest rate, which then gives you a lower monthly payment
    • Variable vs. fixed
    • If you have a 30-year fixed mortgage you may be able to decrease the term to 15 or 20 years
  • Is there a certain amount of equity you need in your existing loan to refinance?
    • Conforming loan – 5% equity
    • Jumbo loan – 20% equity
  • What can you expect to pay in closing costs?
    • Approximately 1% of your loan balance
  • How does your credit score impact refinancing?
    • If you have a higher credit score, you can expect a lower interest rate
    • A credit score of over 740 puts you in the best position
  • Should you use the same lender as your previous loan?
    • While this is not necessary, there may be benefits
    • Can be easier if you already have a relationship, but if rates are lower elsewhere it may be worthwhile to use a different lender

These are just a few things to consider when thinking about refinancing your mortgage. Please feel free to reach out to Liz Garvey or Beth Parker team with any questions at 888-992-8601 or

Here is a link to our podcast with special guest Donna McKeown, who is a Senior Loan Officer for Mortgage Network:

Listen To The Podcast

Best Regards,

The Barry Team

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