In these days of ridiculously low interest rates (under the 4% range at the time of this writing), it is a GREAT time to consider refinancing your home. This is especially so because forecasters are predicting rates will rise – possibly even to 5% – by the end of the year.
The question I want to ask, though, is have you ever considered WHICH home to refinance?
We normally think of refinancing as getting a replacement loan on the house we currently own. While semantically this is correct, from a practical standpoint, when you sell one house and buy another, you are also refinancing. And sometimes it makes more sense to get that new loan on a different house.
If you think your current home is the one that best suits you for the long haul, by all means take advantage of these great rates, and pay as little as possible for the money you have borrowed. But if you what you really need is more house (or less!), more yard (or less!), or some other attribute that your current house will never really offer, consider selling it, and get that new loan on the house of your dreams!