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Pandemic refinancing boom

How to know if now is the best time to refinance your home
Some Americans are eager to save money on their mortgages, and others are afraid of falling...
Some Americans are eager to save money on their mortgages, and others are afraid of falling behind on their payments.(Source: Getty Images, NerdWallet)
Updated: Sep. 10, 2020 at 3:32 PM MST
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TUCSON, Ariz. (KOLD News 13) -

One field that’s actually booming in the pandemic: home refinancing. It’s up more than 200 percent from last year, driven by rock-bottom low mortgage rates. But that doesn’t mean refinancing is a bargain for everyone.

Here’s what you have to consider when deciding whether to refinance in these strange times:

First, you may be able to get a lower monthly mortgage rate, but you need to weigh that against how far along you are in your current mortgage. Never forget - taking out a new 30-year mortgage means you start all over again on your home loan.

Next, calculate closing costs - usually between three and six percent of the amount of your new loan.

Figure out how much you’ll save each month by refinancing - then how many months you’ll need to recover those closing costs.

And - how long do you plan to stay in the house? If it’s a long time, a new loan may make sense.

If your current mortgage has a rate one percentage point than the current rate you’re considering, a refi may be for you. Find more information.

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