With interest rates still low, you may be wondering if refinancing your mortgage is right for you. Below is a quick guide for homeowners interested in lowering their mortgage payments and refinancing their home loans.
When Refinancing Is Right for You?
While refinancing your mortgage may seem like a great opportunity for you to lower your monthly mortgage payments and reduce your debt, make sure to use a mortgage calculator and calculate if refinancing your mortgage will actually save you in the long run.
Refinancing your mortgage should be done to reduce your interest rate, shorten your term, or consolidate any revolving debt.
Refinancing your mortgage may be right for you if:
Your goal is to get a lower interest rate and lower your monthly payment
You Want to shorten the length of years on your mortgage.
You need to get out of an adjustable-rate (ARM) or interest-only mortgage
Want to create additional cash flow each month with your savings.
Refinancing your mortgage may NOT be right for you if:
You plan on moving within a year.
You haven’t made timely payments on your mortgage within the last 12 months.
You are upside-down on your mortgage and owe more than your property is worth. It may be difficult to be approved for a refinanced mortgage.
How To Refinance your Mortgage
When refinancing your mortgage, you can choose to take cash out, or refinance the remaining amount on the loan. Before you start the refinancing process, review your current situation to determine if you would quality for a refinanced home loan. Consider your income, employment history, credit score and other loan qualifiers, as these will apply on refinancing loans as they do for first time home buyers.
As you begin the refinance process, make sure to collect important documents that will be needed for home loan refinancing such as information about your current home loan, income statements, tax and property information, and homeowner’s insurance rates.
With most home loans, any costs incurred for your refinance can simply be rolled into the new loan. We will keep any refinancing costs to a minimum and will go over them in person so there are not any surprises at closing.
Mortgage Calculators for Refinancing
Using a mortgage calculator will help you determine if refinancing your mortgage is right for you. In some cases, refinancing will save you money on your monthly payments AND the life of the loan.
Want to learn about mortgage rates for refinancing, or determine if refinancing your mortgage is right for you? Contact us today!
RIGHT NOW IS THE TIME TO REFINANCE!
Mortgage rates are the lowest they’ve been in YEARS. Give our office a call to see if we can help you refinance your loan and get you into a lower monthly mortgage payment! You CAN refinance with us even if we don’t have your current loan.
Refinancing allows you to save money. With interest rates being much lower than they were five to 10 years ago, many are refinancing to get a lower rate on the remainder of their home loan balance. Lower rate = less interest paid = lower house payment = more money in your pocket. There’s really not a great reason NOT to refinance.
What do I need to refinance?
Refinancing your home is basically like applying for a new home loan. You’ll need to apply online and enter your information. We’ll need you to provide documentation for things like your income, employment, address history and tax returns. We’ll pull credit to make sure you qualify and work with you to determine the best new mortgage program for you.
Can I change loan companies when I refinance?
You do NOT have to refinance your mortgage with the same company. So for example if you are not currently a Harrison Lending Group customer, you can still call our office and apply for a refinance of your current loan through us.
Does it cost to refinance?
The costs associated with a refinance involve an appraisal (if needed for the loan) and any closing costs to process the loan. These are the costs typically involved in a new home loan. There is an option to roll the closing costs into the total home loan amount if needed. We go over all of this so that there are no surprises.