Homeowners may wonder whether or not it is too late to re-finance their home to make the most of low interest rates. They may have reduced income or lost jobs as a result of the pandemic or simply want to take advantage of these low rates. Whatever the reason for the discussion, it is a valuable one to consider as mortgage rates for a 30 year fixed mortgage continue to hover around 3%.

Those who are looking to refinance should ask the following questions to help better ensure they make the decision that is best for their future financial goals:

#1: Is there enough of a difference to warrant the change?

Refinancing is not as easy as signing off on some paperwork. It takes time and expense to refinance a mortgage. Because of this, it is important to make sure the switch is worth it. A good rule of thumb: if the rate is at least 1% less than the current rate, it may be worth the change.

#2: Have you considered all options?

There is likely more than one financial institution that can offer refinance options. Get information from a few and review the terms to find the best fit. Look for things like the overall interest as well as closing costs, terms, and penalties.

#3: Do you need something more aggressive?

If you are struggling to make payments, you may want to consider more aggressive negotiations with your lender. In some cases, they may be open to a loan modification to help keep your business, keep payments coming in and keep you in your home. If this is not successful, you could consider other options like a short sale or deed in lieu of foreclosure. The right choice will depend on your current situation and future financial goals.