While your mortgage interest is tax deductible, a lower mortgage payment or cutting back on the number of years on your note is a great idea if you haven’t done so recently.
Nathan Mersereau, certified financial planner and CEO of Planning Alternatives, said rates this low make it imperative to at least look into financing.
“Right now, they’re at historic lows. If you have the opportunity to refinance, lowering your monthly mortgage payment is going to save you money that you can immediately put in your pocket or apply to your goals,” Mersereau said.
The Dollar Stretcher editor and founder Gary Foreman said there are many things to consider when refinancing your mortgage.
“Typically with a mortgage, you want to get the shortest time frame that you can afford the payments on... A lot of companies will have a low interest rate but have a ton of fees on the front-end, so you have to factor that in,” Foreman said.
“Nothing says that you can’t refinance your auto loan too. Go to your local bank and find out when they’ll do a refinance. Their rates may be a lot cheaper than the rates that you got when you first bought your car.”