Wiser Wealth: With Mortgage Rates Rising Homeowners Wonder if Now is the Time to Refinance


It’s easy to get caught up in your day-to-day routine and put off making long-term decisions for another time. However, that makes it easy to get caught unprepared when your window of opportunity to make a decision suddenly starts closing.

According to Julia Carpenter of the Wall Street Journal, the last year has seen a record low on mortgage rates. The rates are now beginning to rise again, prompting many homeowners to suddenly wonder if they should refinance before they miss a good chance.

There are a lot of variables to consider, starting with determining how much you could actually save by refinancing now. That will depend on factors like your current income, your credit history, and your home equity.

It is also wise to consider how much you will be saving from refinancing versus what you would have to spend on closing costs for your current rate. Insurance, taxes, and other fees will all come into play.

Generally, refinancing now might make the most sense for homeowners who are planning to continue living where they are for the long-term.

Ultimately, your decision should be based on the same questions you would ask even if you were considering refinancing under normal circumstances. Experts agree, like Gordon Miller, the president of Miller Lending Group. Miller said, “I don’t want people to rush, and I don’t want them to chase a bottom or chase a rate. Do the math. If I had a nickel for every time someone said, ‘We’ll never see rates this low again,’ I would’ve retired after three years.”

To learn more about what you should consider before refinancing, be sure to read the Wall Street Journal’s article on the subject by clicking here.


Need financial planning advice? Learn more about Fred Hubler’s no conflict of interest, retainer-based financial advice model here or read more about Fred’s Phoenixville business here.



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