The benefits to refinancing your mortgage are savings on interest over time, getting rid of Private Mortgage Insurance (PMI), receiving cash for the difference, and using the savings from the reduced monthly mortgage to pay off other debts or save money.
Consider refinancing if it takes 1-2 years to break even on the closing costs versus monthly savings, if the new interest rate is a ¼ % lower or better, you have a credit score of 740 or greater, and you’ve got all the necessary documents for loan underwriting.
The goal of refinancing your mortgage is to get the best terms and the best interest rate.
There are actually ways you can use your expenses as leverage to help you pay off your debt and save more money.
Developing a budget, paying your bills on time, and prioritizing expenses helps to gain clarity of your financial picture, keeps your expenses low and credit ratings high, and helps you build a strategy to best leverage your expenses to save money.
Prioritizing your expenses helps you take advantage of tax levers that can ultimately help you save more money over time.