When Is the Best Time to Refinance Your Long Island Home?

Timing your refinance can make a major difference in your long-term savings. Whether you’re hoping to lower your rate, shorten your loan term, or tap into home equity, understanding the best time to refinance your Long Island home is key to making a financially sound decision.

Why Homeowners Refinance

Homeowners across Long Island choose to refinance for several reasons:

• Lowering monthly payments by securing a lower interest rate

• Accessing home equity through a cash-out refinance

• Switching loan types, such as from an adjustable-rate mortgage (ARM) to a fixed-rate loan

• Paying off the mortgage faster by reducing the loan term

Refinancing can free up cash flow, help fund home improvements, or create long-term financial stability — but only if the timing is right.

When It’s a Good Time to Refinance

1. Interest Rates Have Dropped

If current mortgage rates are at least 0.5% to 1% lower than your existing rate, refinancing could lead to significant monthly and lifetime savings.

Example:
If you have a $600,000 mortgage at 7% and refinance to 6%, you could save hundreds of dollars each month — and tens of thousands over time.

2. Your Home Value Has Increased

Long Island property values have appreciated in many areas over the past few years. If your home is now worth substantially more than when you purchased it, you may qualify for better loan terms or remove private mortgage insurance (PMI).

3. You Plan to Stay Put

Since refinancing involves closing costs, it makes the most sense if you plan to stay in your home long enough to recover those expenses — usually 2 to 5 years.

4. You Want to Consolidate Debt

If you have high-interest credit cards or loans, using a cash-out refinance to consolidate them at a lower mortgage rate can simplify your finances.

5. Your Credit Score Has Improved

A stronger credit profile often unlocks better rates. If your credit score has improved since you first purchased your home, refinancing could help you qualify for more favorable terms.

When It Might Not Be Worth It

1. You’re Planning to Move Soon

If you plan to sell your home within a year or two, refinancing may not make sense — it often takes several years to recoup closing costs.

2. Interest Rates Are Higher

When current rates are higher than your existing loan, refinancing could increase your monthly payments instead of lowering them.

3. You’re Already Deep Into Your Mortgage Term

If you’re more than halfway through paying off your mortgage, restarting the clock with a new loan may add unnecessary long-term costs.

How to Decide if It’s the Right Time

Here’s a quick checklist before you refinance:

• ✅ Compare your current mortgage rate to today’s averages.

• ✅ Calculate how long you plan to stay in your home.

• ✅ Estimate your closing costs and break-even point.

• ✅ Check your credit score and debt-to-income ratio.

Eric Berman REALTOR can connect you with trusted Long Island lenders to analyze your specific numbers and determine if refinancing will truly benefit your bottom line.

FAQs

1. How much can I save by refinancing?
Savings vary by rate, term, and loan size. Contact Eric Berman REALTOR for a personalized refinance savings analysis.

2. How long does refinancing take?
Most refinances close within 30–45 days. Reach out to Eric Berman REALTOR for help managing the process smoothly.

3. Can I refinance if I recently bought my home?
Yes, but it’s best to wait at least six months to build equity. Ask Eric Berman REALTOR for guidance based on your loan terms.

4. What fees are involved in refinancing?
Typical costs include appraisal, title, and lender fees — usually 2%–5% of the loan amount. Contact Eric Berman REALTOR for help comparing offers.

5. Is now a good time to refinance in Long Island?
It depends on rates, your home value, and your goals. Speak with Eric Berman REALTOR for an up-to-date market review.

Eric Berman, REALTOR®
Compass Greater NY
917-225-8596
eric@ericbermanre.com
www.theericbermanteam.com