When Should You Refinance Your Mortgage?


By SJS Senior Advisor Andrew Schaetzke, CFP®.

Over the past year, mortgage interest rates have unexpectedly fallen due to economic response to the COVID-19 pandemic.[1] This provides a good opportunity for mortgage holders to review and possibly refinance their mortgages. As refinancing calculators can demonstrate, mortgage holders who switch to a lower fixed rate can sometimes save thousands of dollars or more in interest payments with a new mortgage.

There are many reasons people consider refinancing, including:

However, there are important considerations and tradeoffs when refinancing. For example, it can require a lot of time and additional paperwork, and the interest rate change may not justify the work.

Thus, what should you think about when considering refinancing a mortgage? We provide the attached resource for you to help determine whether to refinance your mortgage. As always, please reach out to us if you have any questions, need a referral, or want to work through the decision-making process. We are always here to listen and assist.


Important Disclosure Information & Sources:

There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.

Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice. This material has been prepared for informational purposes only.

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