Have you considered refinancing your home, but not yet taken advantage of the record low rates? Perhaps you are unsure if you have a good enough credit score, enough equity in your home or are expecting mortgage interest rates to move even lower in the future.

Even with all of these concerns aside, how do you know when it truly is the "right time" to refinance?

Here are several reasons to help you determine if a refinance will be beneficial for you:

1. You Want to Snag an All-Time Low Interest Rate

If you have been sitting on the sidelines waiting for interest rates to hit rock bottom, now may be the time you want to jump into the game. Thanks to the Federal Reserve's decision to buy $40 billion of mortgage-backed bonds, mortgage rates have been the lowest we have seen in months. This purchase aims to lower mortgage rates and stimulate the housing market until the Federal Reserve deems no longer necessary, which means there is no certainty in how long these great rates will last.

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2. You Have Good Credit

If you pay all of your credit cards on time in addition to keeping up with you mortgage payments, you most likely have a good credit score. This low credit score is what is going to help you qualify for a refinance and get these all-time low interest rates. In order to qualify for today's current rates, most lenders require that you have a credit score of 720 or above. Credit scores can range from 300 to 850 and the higher your score, the better your credit. There are many factors that go in the calculation of you credit score, but the most important aspect (65%) is your payments history and amount you still owe on previous loans.

Do you have good credit? Click here to fill out our short form and see how much you qualify for!

Even if you credit is not at 720, it is still important to continue paying your mortgage and all other debts on time, so in the future refinancing to a lower rate will be an option for you.

3. You Want to Pay of Your Mortgage Sooner Rather Than Later

Wouldn't it be better to own your home in 15 years rather than 30? With the historic low rates it is possible for you to refinance into a lower interest rate with a 15-year loan and pay off your mortgage in half of the time. If you have other investments that have a very lower interest rate over time, it may make financial sense to pay off your mortgage first. Often times there are zeros fees and costs associated with a refinance and you will benefit in the end with a lower monthly mortgage payment or a shorter life of your loan.

Want to get a shorter term loan? Click here to request a free rate quote!

4. You Have Built Equity in Your Home

Your equity is determined by the difference between the current market value of your home and amount you still owe on your home loan. If your equity is at 20 percent or higher and you have good credit, now is definitely the time to look at the lower rates you could get with a refinance.

In order to determine you equity, lenders will require a property appraisal and will not lend more than 80 percent of the property's value. It does not mean you are not qualified for a refinance if you do not have 20 percent equity, it just means that you may not be able to score the lowest interest rate possible.

5. You Love Your Home

If you love your home and are planning on staying put, refinancing can make perfect sense. In some cases, refinancing your home can be a long-term investment and will take some time for the monthly savings to pay for the initial cost to refinance. While some lenders waive all fees, typically you can expect to pay closing costs that range from half to one percent of the amount you are borrowing. There can also be miscellaneous fees for the loan origination, notary fee, etc.

Factor in the total cost of the refinance as well as how much you are going to save in the long run to determine if a refinance is the right decision for you.

If you would like us to help you determine the total costs of your refinance as well as give you a customized rate quote, do not hesitate to give us a call at (858) 605-0952 or visit us online to request a customized quote.