Jack O'Rourke

Oct 23 2019

5 Signs It’s Time for a Mortgage Refinance


It is a good idea to review your financial situation periodically to see if there have been any changes that may affect your mortgage.

Refinancing your home may be an option that makes sense if:

  • You have 20% or more equity in your home. This could benefit you by reducing or eliminating private mortgage insurance (PMI).
  • You plan on staying in your home for several more years. Take into consideration closing costs. If a lower interest rate decreases your monthly mortgage by $100, how many months would it take to pay off closing costs? If it’s longer than you intend on being in your home, it may not be the time to refinance.
  • You have an adjustable rate mortgage (ARM). If your current interest rate is 1 point less than your existing rate, or if you are not building much equity in your home, low mortgage rates make it a good time to refinance and lock in lower rates.
  • You need to pay for a substantial one-time out-of-pocket expense. If you need to pay for medical bills, college tuition, or would like to make home improvements, you may want to consider taking out a home equity loan or line of credit.
  • If your debt-to-income ratio is near its maximum. Refinancing your home may improve your credit score by freeing up additional income and lowering your monthly payments.

If any of these apply to you, it may be beneficial to review your options. Contact your mortgage lender to have conversation about your finances and see if a mortgage refinance may be right for you.

Jack O'Rourke

About Jack O'Rourke

Jack O’Rourke is a Mortgage Lender at Hills Bank’s Cedar Rapids location on Williams Blvd SW. He has been at Hills Bank since 2009 helping customers with their home buying needs. Jack can be reached at Jack_O'Rourke@hillsbank.com. NMLS ID: 614041

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