When is the right time for home refinancing?
A refinance loan could help you meet your financial needs and goals, and there are several situations that indicate refinancing could be to your benefit. If any of the following apply to you, you may want to kick start the mortgage refinance process soon.
No. 1: You Can Get a Lower Interest Rate
Have interest rates dropped since the time you obtained your original mortgage?
If so, home refinancing could help you get a lower rate. With a refinance loan, you may reduce the amount of interest you pay each month and over the lifetime of your mortgage.
No 2: You Would Like a Lower Mortgage Payment
Are you hoping to decrease the amount of your monthly mortgage payment?
If the current interest rates are not favorable, you may be able to get a refinance loan with a longer term. By refinancing to pay off your mortgage more gradually, your monthly payments will be lower.
No. 3: Your Credit Score Has Improved
How does your credit score look right now?
If your score is significantly higher than it was when you first obtained a mortgage, home refinancing could be advantageous. With a refinance loan, you may save thousands of dollars over the life of your loan.
No. 4: You Want to Switch to a Fixed-Rate Mortgage
Is the fixed period on your adjustable-rate home loan about to end?
If you want to avoid paying a high interest rate, you might want to consider home refinancing. That way, you can choose a fixed-rate refinance loan and protect yourself from future rate increases
No. 5: You Can Pay Off Your Home Loan Faster
Can you afford higher monthly mortgage payments?
If so, you may want to think about taking out a refinance loan with a shorter term than your original mortgage. By doing so, you will save on interest and free yourself from making home loan payments much sooner.
No. 6: You Want to Consolidate Your Debts
Did you know that home refinancing can help you pay other debts?
If you have high-interest loans, credit card debt, medical bills and other financial obligations, refinancing may make budgeting much easier. Your home equity can provide you with the cash you need to pay your debts
To determine if home refinancing is right for you, you will need to speak with a mortgage expert – like the professionals at Integrity First Lending.
Our highly-experienced team can offer practical advice on refinancing and help you find a solution that fits with your financial plan. Let Integrity First Lending, a leading Utah mortgage company, handle your home refinancing and mortgage loan needs, and you will have a stress-free experience. Contact our South Jordan or Tooele office to explore your refinance loan options today.