Is Now a Good Time to Refinance Your Mortgage?

Is Now a Good Time to Refinance Your Mortgage?

If you haven’t compared your current mortgage interest rate with prevailing market rates lately, this may be the ideal time to refinance. But what are the deciding factors?

Lower Monthly Payments.

If you can get a better rate, save money, build equity faster and pay off your mortgage sooner, refinancing can help you score big. If you can reduce your interest rate by one-half to three-quarters of a percentage point, refinancing will make a noticeable impact on your monthly payment.

Savings Should Outweigh the Cost of Refinancing.

If your total savings on monthly payments – over the full period you plan to stay in your home – is greater than the cost of refinancing, the choice to refinance is a home run decision. Let’s say your new loan saves you $200/month and your loan closing costs are $3,500. Just take $3,500 divided by $200 and you will see that it will only take 17.5 months to break even. After that, you can bank those $200 in savings each and every month. Over 15 years, that’s a grand slam savings of $36,000!

Choose the Terms That Make Most Sense for Your Unique Situation.

Most borrowers opt for a 30-year loan, spreading payments over the longest period to achieve the lowest monthly payment. Fifteen-year loans are popular, too, because a smaller share of your payment goes to interest, which accelerates the pace and size of your equity ownership. A third option that appeals to many first-time home buyers and others who don’t expect to own their home forever is an adjustable-rate mortgage (ARM).

ARMs Are Attractive Because Introductory Rates Are Among the Lowest.

At Baltimore County Employees Federal Credit Union, we offer an incredible 15/15 Adjustable Rate Mortgage that keeps your rate especially low for the first 15 years, adjusting only once in year 16. The new rate is fixed for the remaining term of the loan. Qualified borrowers enjoy 0% down payment** and a FREE 120-day rate lock.* For those who intend to move in 15 years or less, this loan may be the perfect choice.

Want to learn more about refinancing?

Contact a Loan Counselor at 410-828-4730 or send us an email at

*From the date of loan application. **Restrictions and limitations apply.
Nationwide Mortgage Licensing System: NMLS # 410315