Is Refinancing Right for You?
Refinancing replaces your current mortgage with a new one — ideally with better terms. But it's not always the right move. Here's how to know when it makes sense.
Top Reasons to Refinance
1. Lower Your Interest Rate
The general rule of thumb: if you can reduce your rate by at least 0.75-1%, refinancing is worth considering. On a $300,000 loan, dropping from 7% to 6% saves about $200/month.
2. Switch From ARM to Fixed
If you have an adjustable-rate mortgage and want the security of a fixed rate, refinancing locks in your payment.
3. Remove PMI
If your home has appreciated and you now have 20%+ equity, refinancing to a conventional loan eliminates private mortgage insurance.
4. Cash-Out Refinance
Tap into your home equity for renovations, debt consolidation, or other major expenses. You can typically borrow up to 80% of your home's value.
5. Shorten Your Loan Term
Switching from a 30-year to a 15-year mortgage means higher payments but significantly less interest over the life of the loan.
The Break-Even Point
Calculate how long it takes to recoup closing costs:
Break-even = Closing costs / Monthly savings
Example: $4,000 in closing costs / $200 monthly savings = 20 months
If you plan to stay in your home longer than the break-even period, refinancing makes financial sense.
Current Refinance Rates
Rates fluctuate daily. Contact The Taberne Group for a personalized rate quote based on your specific situation.
Ready to Explore Refinancing?
We'll run the numbers for you at no cost. Our team will compare your current loan against available options and show you exactly how much you could save.