Should I refinance my mortgage? - Option Home Loans

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Option Home Loans - Refinancing

“Refinancing my mortgage lowered my monthly payment by $200, but I wish I’d known 5 things beforehand.” (

“My husband and I bought a house in 2017 in hopes of paying less every month for a mortgage than we were spending on rent. Saving more than $200 per month is a great perk of refinancing, but I’m also surprised by how much I learned during the process and how little I knew when we started.” (

You’re not locked into your mortgage interest rate

“This may seem obvious, but when we bought the house in 2017 I assumed we were stuck with that interest rate. It wasn’t necessarily a bad rate, but it was representative of where we were financially the time. Fortunately, we’ve made some significant strides in paying down debt, and my husband and I both make quite a bit more money then we did when we took out our first mortgage. While we were technically locked into our interest rate with the first loan, I didn’t realize another company could buy and pay off that loan, offering us a much better rate based on our financial state and the state of the market. Refinancing for a lower rate was worth the savings – our interest rate is now 3.375%” (

Your PMI can significantly decrease when you refinance

“Because our down payment was less than 20%, we got stuck having to pay private mortgage insurance on our loan. I thought we’d pay that $165 every month until we paid 20% of our loan off, but when we refinanced, that amount decreased significantly – our new PMI payment will be $39 per month. It’s cheaper now for a few reasons: With our new loan, we’ll have more equity in our house. We also got a lower PMI because our credit score is better and our debt-to-income ratio is a lot less than when we initially bought the house.” (

An appraisal amount won’t necessarily be the same as your home’s market value

“Our loan officer explained that what a home appraises for isn’t necessarily what it will sell for. Your house is ultimately “worth” what someone will give you for it. If you live in a high-demand neighborhood where houses are getting multiple offers, you might sell your house for more than the appraised value” (

You might not want to refinance if you plan to move soon

“Around the time we began refinancing, my husband and I were entertaining the idea of selling our house in the next year or two – but our loan officer advised us against it. When you refinance a home, just like buying a house, there are significant closing costs, which may borrowers roll into their loan rather than paying up front. In many cases, it’s smarter to wait until you build more equity on the new loan before selling.” (


Let us help you!

With interest rates at their lowest levels in decades, it pays to check whether your current home loan is still right for you. It’s a time consuming task that many people put off, even though they may have the potential to save significant amounts of money.

At Option, our primary concern is: how much money we can save you. That means we work extremely hard to make sure we find your best loan option, check on your current home loan and let you know whether you could save by switching. If you do decide to switch, we’ll do all the legwork for you to make it as easy as possible.

The cost of this consultation is 100% covered by us. Why? Because your future is important to us.

Every client we serve, we want to go above and beyond for. We want to make sure your financial future is secure – and if we do that well, you’ll be able to get your next property sooner.

How it works?

At Option Home Loans, we will meet you at a time and place that suits you. As soon as you contact us or book an appointment, one of our lending specialists will be in touch.

Make your life changing decision and contact us today!
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