This is an excellent question and here are some things to consider when choosing to refinance or to hold off:
- Even though Mortgage Rates are slightly higher than their all-time lows, it may still be very favorable to refinance. In many cases, you can significantly reduce your monthly payment and reduce costly mortgage insurance.
- It might be tempting to play the market and see if interest rates come back down to their all-time lows. But even if they eventually did, you could have been banking significant savings by refinancing today. It will likely take several years before a potential lower rate in the future would catch up to the savings you could start seeing right away.
- In addition, home prices continue to move higher as the Wall Street Journal reports. So if you are thinking about selling and buying a different home, it might cost more than refinancing your current mortgage or doing a cash-out refinance and adding an addition onto your home.