Your home is probably one of your biggest investments and your mortgage payment is most likely one of your biggest monthly expenses. According to the New York Fed, mortgages account for 71% of the combined household debt in the first quarter of 2022. You want to make sure you are getting the best possible deal on your mortgage and that sometimes means refinancing. A home mortgage broker can help you with this big decision. This article will take a look at three signs that it might be a good idea for you to refinance your mortgage.

1. You've Improved Your Credit Score

Perhaps when you first got your mortgage, your credit score wasn't in the best shape. The interest rate that you receive for a mortgage is based heavily on your credit score. If over time you have improved that score, then you will be able to refinance and hopefully get a better interest rate. A home mortgage broker can take a look at what you have accomplished financially and will make a new decision on your rate. Work with a local broker that offers same-day pre-approvals in order to learn more about the new rate you may be eligible to receive as quickly as possible.

2. You've Noticed Interest Rates Have Dropped

When you've noticed interest rates have begun to drop, you might consider refinancing your mortgage. If interest rates were very high when you purchased your home, you might not have gotten the best deal possible. However, interest rates change frequently. If the rates have dropped, you could refinance and get a more affordable monthly payment. Schedule a virtual consultation with a brokerage firm today to learn more about the current interest rate levels.

3. You've Built Equity In Your Home

Another reason why people may choose to refinance is because they've successfully built equity in their homes. They may want to get some of this equity out of their home for another project. Getting equity out of your home can put cash in hand for projects such as home improvements, big purchases, college education, or other expenses. Work with an experienced home mortgage broker to learn more about this process.

If you own a home, it's imperative to take time to learn about how to manage your expenses. Refinancing your mortgage can be a great way to save and can allow you to allocate your funds for other important matters. If you'd like to learn more about refinancing your mortgage, please contact Rick Valdez, Loan Officer, NMLS #105548 today.