3 important things to ask your lender before refinancing

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This is the bottom line of any refinancing conversation with your lender. As Forbes points out, some types of refinancing can actually increase your monthly mortgage payments. Still, it could benefit you in the long run by lowering the amount you’ll pay back overall, shortening the time until you’re mortgage free, or giving you a way to access a large amount of money. compared to other methods.

But increasing your monthly financial obligation is always a serious thing to consider and commit to, and if you miscalculate your ability to meet higher monthly mortgage payments, your home could be at risk.

Conversely, if you have an interest rate on your mortgage that is higher than current market rates, and/or if you have improved your financial situation and therefore qualify for a lower rate, according to Bankrate, you might see a Dramatic decrease in mortgage costs (monthly and overall) through refinancing.

If you hope to negotiate this type of refinance, you should obtain your lender’s estimate of your monthly repayments and associated closing costs in order to assess whether or not to proceed with the refinance process.

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