Whether you need cash in your pocket now or you want to take years off your loan, refinancing is often a go-to solution. However, there are times when a refinance might cost you more than it saves. Your mortgage company in Las Vegas can advise better on your specific situation, but here are some signs that it’s time to take another look at your home loan.

Your ARM is About to Adjust

This is one of the main reasons that good people ended up in foreclosure. You bought a house at a very low teaser rate, usually adjustable, thinking your payments wouldn’t change much when the rate adjusts. This can be especially shocking if you took out an interest-only loan with a large adjustment due after 5 – 7 years. If you’re in danger of getting in over your head, refinance now to a fixed-rate mortgage.

You’ve Had a Change in Circumstances

You may have taken out a loan with high interest attached because you had some credit blips or a low income. If you’ve taken the steps to raise your credit score or had a significant bump in income, you may qualify for better mortgage rates.

You’ll Save More on Interest

Traditional wisdom states that you should wait until there’s a 2 percent difference between your mortgage rate and the current market rate on a fixed loan. However, historically low closing costs and larger mortgages have changed the rules a bit. A decrease of as low as .5 percent can save a significant amount of money if you have a jumbo loan and you can get good terms on up-front, out-of-pocket expenses.

The Bottom Line

Your goals and reasons for a refinance matter also. Are you looking to pay less out-of-pocket monthly, wanting to convert from a 30-year loan to a 15-year loan, or do you want to save on the total price of owning a home overall? Before you talk to a mortgage broker about your loan, consider the benefits of renegotiating versus the cost of doing so.