When asking if it is the right time to refinance, there is no blanket answer for every person; refinancing makes sense when you can reduce the costs of the loan. Interest rates are extremely low right now and these record low mortgage rates make refinancing an extremely attractive option.
There are many ways doctors can benefit from a lower interest rate. First, you could refinance to cut the interest rate on your existing practice or home mortgage or to consolidate all mortgages (first and second/home equity line of credit). Another reason to refinance is to reduce the mortgage term (e.g. from 30 years to 15 years) for faster payoff. If your current loan has an adjustable rate mortgage (ARM), you could convert the existing ARM to a fixed rate. If you have high credit card debt, a refinance could reduce interest rates and make more of the interest paid tax-deductible. Finally, one could pay down a jumbo mortgage using low-yielding cash or other personal investments to qualify for a lower interest rate conventional mortgage.
In order to know if a refinance is a good idea for you now, you need to consider a few things. Some of your considerations should be: your current rate, if you have equity with your current loan, when you plan to move, if prepayment penalties exist and other fees to refinance.
Many experts believe that when rates rise, they will rise quickly. If you are a candidate for a refinance the time to act is now.
If you would like help determining if you are a candidate, feel free to contact us and we will help.