Thinking about refinancing your home loan? Whether you’re a first-time buyer, growing family, or long-time homeowner in Central Texas, knowing when to refinance can help you save big in the long run. As a trusted buyer’s agent, seller’s agent, and real estate agent here in the Copperas Cove area, Century 21 Premier Realtors is here to break down the best times to consider refinancing.
When Interest Rates Are Low
Refinancing when interest rates drop can significantly reduce your monthly payment and lower the total cost of your loan. If rates have fallen since you first locked in your mortgage, now might be the time to act.
When You’ve Improved Your Credit
Have your credit scores gone up since you got your home loan? That boost can help you qualify for a better interest rate. Lenders reward good credit with lower rates, which means more savings for you.
When You Can Shorten Your Loan Term
Switching from a 30-year loan to a 15-year loan can help you pay off your home faster and save thousands in interest. This option is best when you’re financially stable and ready to commit to a higher monthly payment for long-term gain.
When You’ve Built Equity
If your home value has increased and you’ve paid down your mortgage, you’ve built equity. Refinancing with more equity can get you better loan terms and help you eliminate private mortgage insurance (PMI).
When You Want to Switch Loan Types
Moving from an adjustable-rate mortgage (ARM) to a fixed-rate loan can give you more stability. A fixed rate means your payments stay the same, even if market rates rise—great for budgeting and peace of mind.
All in all, timing your refinance is just as important as finding the right home. A local real estate agent who understands the market can help you know when the time is right and guide you to trusted lenders.
Looking to refinance or buy or sell a home in Central Texas? Call Century 21 Premier Realtors today. As your buyer’s agent and seller’s agent in Copperas Cove and surrounding areas, we’re here to help you move forward with confidence.