Refinancing your mortgage is a common financial strategy. As your life changes, it just makes sense that what you need from your home loan might change, too. Look out for the following signs that it’s time to review your mortgage.

Interest rates are low

Attractive interest rates are one of the major reasons why homeowners decide to refinance their mortgage. If market rates are sufficiently lower than what you’re paying now, you could lower your monthly payment and save big over the life of your loan.

Your household income has changed significantly

There are many reasons why your household income may be much higher or much lower than it was when you took out your mortgage. Maybe you need to extend the term of your loan to lower your payment. Maybe you’d like to pay off your mortgage faster. The bottom line is that when your financial situation changes, it’s a good idea to double-check that your current home loan is still the right product for your new circumstances.

The introductory period of your mortgage is about to expire

Some mortgages are structured to be interest-only for a certain time frame or offer a low fixed-rate period before shifting to an adjustable rate. If you’re approaching the end of an introductory period and your monthly payments are about to increase, you might want to consider getting an altogether new loan instead.

Housing prices have increased in your area

An increase in housing prices means your home is now worth more than you paid for it. This difference between the new market value and the principal balance on your mortgage translates to home equity. With equity in your home, a new set of mortgage options become available.

You’re struggling to make your payment

We all go through tough times at different stages in our life. If coming up with your mortgage payment becomes a source of monthly anxiety, it’s worth looking at refinancing to see if a new home loan can lower your payment and improve your cashflow.

A few years have passed

It’s a good idea to speak with a mortgage broker every few years to review your options and compare them to your current home loan. “Set it and forget it” is often a poor strategy when it comes to your mortgage. Even when you get a great deal, you just never know when a better option might be available.

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