If you have been living in your mortgaged home for a few years now, you may want to begin to think about refinancing. With interest rates the lowest that we have seen in quite a while, now is a great time to go through the process and secure a lower monthly payment. However, if you are new to the process, or if you have signed your mortgage before the implication of TRID, then you may be surprised to find out how extensive the process really is. Today, we’re giving you all the information you need to refinance your home with confidence.
The first thing you need to assess as a potential refinancer is your goal. Generally speaking, a refinance will lower your monthly payments, but in others it can be used to reduce the life of the loan, or even allow you to build equity faster. Once you gauge your financial information and know why you want to refinance, you can then start to shop around and find the best rate for you.
This goes without saying, but make sure that you stay on top of your credit score throughout the whole process. If your credit score is not exactly where you would like it, then it may pay to wait and raise your score, and then go after the refinance. It all depends on your individual situation, which is where an online mortgage refinance calculator can come in handy.
When looking to refinance, it also counts to know how much you will be spending in fees. From recording fees to closing fees, and even title insurance fees, a refinance application can have it all. By knowing exactly what you will be spending, you won’t be surprised down the road, and can better plan for how it will impact your finances.
Finally, you are going to want to know if you want to lock your rate, and when to do it. This move can be a tricky one, which is solely based off of the financial trends at the moment, so timing is key. In our opinion, the rates have been at a good standing, so now may be the best time to do it.
However, just know that refinancing is not a one-time deal—you can do it as many times as you’d like (so long as you can secure a loan, that is). When timed right, refinancing can be an expert financial move that significantly lowers the amount of debt you have.
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