Refinancing—or Paying Off—a Mortgage? Questions to Ask Yourself

Low interest rates and economic uncertainty have a lot of people rethinking what to do with their mortgage

With interest rates currently around 3% for 30-year and 2.5% for 15-year fixed loans, there can be merit to refinancing and investing the savings or keeping a cash cushion.

Photo: justin lane/Shutterstock

Should you refinance your mortgage? Or maybe pay it off? Many people nearing retirement are considering these options amid pandemic-induced uncertainty in the financial markets and historically low interest rates.

For some older homeowners, the idea of saving money by refinancing is appealing. With Bankrate data showing the interest rate on 30-year, fixed-rate home loans hovering and 15-year rates , there can be merit to refinancing and investing the savings or keeping the cash for an extra cushion during the pandemic.

Other homeowners—especially those who tend to be risk-averse and aren’t seeing a run-up in their portfolios—may find the current environment ideal to rid themselves entirely of one of their largest monthly payments.

“Mortgages are top of mind for homeowners due to historically low rates. When your neighbors, friends and everyone on social media are talking about their recent refinance, it’s hard not to think about your own,” says Brent Weiss, co-founder of Facet Wealth, a registered investment adviser in Baltimore. “And with mortgages being top of mind, for some it becomes natural to ask if paying it down or off sooner makes sense.”

香蕉视频苹果下载Here are some things to consider when making the decision.

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