Have interest rates on home loans gone down since you signed on your mortgage? Has your credit score increased or your DTI ratio dropped?
If you think you might qualify for a more competitive mortgage today, a refinance on your home loan could be in order.
There are so many possible benefits of refinancing at the right time. Here are some to consider:
Refinancing your mortgage could mean lowering your interest rate.
You can restructure your mortgage when you refinance, changing the format of your interest rate and/or your loan term.
With your enhanced bargaining power, the overall terms of your refinanced mortgage could be more favorable.
Refinancing can save money, reduce stress, and increase financial stability.
How do you know if this is the time to refinance your mortgage?
Many borrowers refinance when interest rates drop significantly compared to what they were when they took out their original home loan. There is no reason to go on paying a higher rate when your neighbors are paying less on interest every month.
If your risk profile has become more favorable than it was when you took out your original mortgage, it makes sense to refinance. A higher credit score and lower DTI ratio should mean that you qualify for better rates and terms today than you did originally.
Refinancing is also wise when plans change. Maybe you originally thought you would only be staying in your house for several years, so you chose a loan with an adjustable mortgage rate. If you will be staying for a long time, you can refinance to a fixed rate for greater financial stability.
The reverse would also call for a potential refinance. If you chose a fixed rate, assuming you would be in the home for long time, and now you know you will be moving out in a few years, switching to an ARM with a low initial rate could save you money.
If your income has increased and you can now afford to make larger monthly payments, refinancing can allow you to pay off your mortgage early without prepayment penalty.
If your income has decreased, refinancing to a longer term will allow you to make smaller monthly payments going forward.
If you have been paying for PMI on a loan which requires it, refinancing to another type of loan may allow you to stop paying for PMI. This can save considerable money over time.
Need some extra cash? It could be time for a cash-out refinance. With this type of loan, you can receive a lump sum of cash which you can use for home repairs and upgrades and other expenses.
Here at The Best Home Loans, we want to make sure that your mortgage works for you over the long term, not just when you sign on it originally. That is why we offer a guarantee program called “Lender for Life.”
Through this program, you can get a free refinance on your home loan anytime over the lifetime of the mortgage. That means that when you first shop for a mortgage, you can pick the loan which is mot suitable for you at that time without worrying about the future. It also means that if you originally worked with us on your existing mortgage and are due for a refinance, we can take care of it for you at no cost.
Refinance your home loan now and look forward to saving money and enjoying greater ease and convenience managing your mortgage. Please call us today at (800) 293-2133 to schedule your mortgage refinance consultation. We work with customers to refinance in California, New York, Illinois, Florida, Texas and all 50 states.
The Best Home Loans is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.