When Does Refinancing Your Texas Mortgage Make Sense?

The short answer

A refinance makes sense when the savings or the benefit outweighs the cost of doing it, and when you will stay in the home long enough to come out ahead.

The break-even test

Divide your total closing costs by your monthly savings. The result is how many months it takes to recoup the cost. If you plan to stay longer than that, the refinance may be worth it.

Good reasons to refinance

• Lowering your rate or payment.
• Shortening your term to save interest.
• Removing mortgage insurance when your equity allows.
• Switching from an adjustable to a fixed rate.
• Pulling equity for a planned need.

Questions to ask first

• What are the total costs, not just the rate?
• How long will I stay in the home?
• Am I restarting a 30-year clock?

Frequently asked questions

What rate do I need to refinance?

There is no magic number. It depends on your balance, costs and plans. Ask us for a quick, no-pressure break-even review.

Call (469) 414-5554 for a free refinance check.

By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not a commitment to lend or financial advice. Programs, rates and guidelines vary and change.