A recent article in the New York Times argued it was time to refinance your mortgage since interest haven fallen to their lowest point in years.
“The average rate on a 30-year fixed-rate mortgage was 3.8 percent at the end of last week. That is down from 4.5 percent as recently as last spring, the lowest since May 2013 and far below the 5 percent-plus rates that prevailed as recently as early 2011.”
Is it a good time to refinance your mortgage? Is that always a good decision? Here are some things you need to know about refinancing your mortgage.
How Does Refinancing Work?
Refinancing your mortgage mean you effectively pay down your current mortgage and take out a new one with a new interest rate. As the New York Times article points…