How Much Equity Do I Need to Refinance? | Credit.com
When you own a home, you often have a mortgage. But the interest rate you secure when you take out your mortgage doesn’t have to be forever. A refinance can secure you a better rate or different mortgage terms. Figuring out if a refinance is right for you requires the consideration of several factors. These range from your current home value and mortgage details to refinance rates and LTV or loan-to-value limits.
It’s important to see how refinancing will impact your monthly payment and if refinancing to a new loan with new terms makes financial sense for you in the long run as well. Before you get there, it is a good idea to better understand these factors that go into the decision-making. You will hear a lot about your loan-to-value ratio and refinancing loan-to-value limits in your research. Check out the details below so you can more properly decide if refinancing your mortgage is the right move for you.
