Is This the Right Time to Refinance?
Mortgage rates hit historic lows in recent weeks and remain low today. For many homeowners, refinancing your home can sound like a lot of time, energy, and hassle for what seems like just a few percentage points. But did you know that those ‘few’ percentage points can save you thousands of dollars over the life of your mortgage, both in lower mortgage payments and overall interest paid? If you’re working with the right mortgage lender, locking in a low mortgage rate and refinancing your mortgage doesn’t have to be a struggle.
Should I refinance?
If you fall into any of the following categories, it is even more important that you look into refinancing your loan sooner than later:
• Your current rate is over 5%
• You are currently paying mortgage insurance
• You have a VA or FHA Mortgage
In order to be considered eligible to refinance your mortgage, you’ll need to meet these basic requirements to lock-in today’s low mortgage rates. Keep in mind that a quality mortgage lender will walk you through every step of the way and will make the process worry-free and hassle-free for you.
• Be in good standing with your current mortgage
• Have at least 10% equity in your home (greater than or equal to 20% is ideal)
• Meet certain debit-to-income requirements
• Be able to pay the closing costs on your new loan (some mortgage lenders will actually pay some of your closing costs too!)
Ready to start the refinance process?
The first step to refinancing your home loan is finding the right lender to work with. Don’t make the mistake of thinking that the lowest rate available is the only thing that matters. You’re going to want a personal loan consultant who will work with you and help you understand the refinancing process; someone you trust to give you the best loan offer possible and someone who is looking out for you! Ask your friends and family for recommendations; don’t just choose the best salesperson!
Once you’ve selected a loan consultant, you’ll need to complete an application. This will allow your lender to give you the most accurate rate quote and start your home refinance process. If you want to take care of this step online, you’ll need the same types of information you needed when originally applying for a mortgage, such as your social security number, contact and employment information, and information regarding your income, assets, and liabilities.
Not quite ready to start the process?
Remember, rates are near historic lows, so you owe it to yourself to get a rate quote. You can then estimate your savings online using a mortgage rate quote calculator. Many are surprised how much they can lower their monthly payment with even just a small decrease in your loan rate.
Many homeowners are simply throwing money away by not refinancing their home. Are you one of them? Lower your payments by refinancing to alow mortgage rate today. With every month that goes by, you are simply paying more than you should be. It’s just as easy to lower your mortgage payment as it is to procrastinate and sit on the sidelines.