Many people find themselves asking, “When is the right time to refinance my mortgage?” It is a great time when interest rates are low and there is an increase in home values.

There are a few things to consider:

• Will the savings outweigh the costs?
• How much should a refinance lower the interest rate?
• Could you benefit from changing your mortgage product?

The rule of thumb is, if the savings received from refinancing outweighs the costs, it is certainly something to consider. Interest rates have been at an all-time low. But when do you know when they are low enough? Lowering your interest rate by 0.5-1%, depending on the transaction, makes a refinance worth considering. If your credit score has gone up since the initial purchase of your home, you could also get a better rate!

Another way to get a lower rate, or to save money, is to consider a different mortgage product. This could include shortening or extending the term of your conventional mortgage or getting an Adjustable Rate Mortgage (ARM). Decreasing the term of the loan can make a significant difference in the amount of interest you’ll pay over the life of the loan. Increasing the term can help lower your monthly payment.

If you are wondering if the time to refinance your mortgage is now, Goldenwest Credit Union offers free, financial reviews. We’ll discuss mortgage options and find the right product that meets your needs. Call or come into a branch to speak with a Mortgage Expert today!