NOTE: Due to the coronavirus outbreak, refinancing may be a bit of a challenge. Lenders are dealing with high loan demand and staffing issues. If you can’t pay your current home loan, there are programs that mortgage companies are offering through the federal government. For the latest information on how to cope with financial stress during this emergency please feel free to contact our office and set an appointment, although we handle the title side of these transactions we do have referrals for lenders we work with that may be able to service your needs.
With mortgage rates near rock bottom, it’s a good time to refinance a mortgage. To decide if refinancing is right for you, first look your finances as a whole. Ask yourself: How long you plan to stay in your home? What are my financial goals? Lastly, find out your credit score. All of these things, along with current refinance interest rates, should play a role in your decision about refinancing.
Usually people to start thinking about refinancing when they notice mortgage rates falling below their current loan rate; however there are other good reasons to refinance:
1. If you’re looking to pay off the loan quicker with a shorter term.
2. You’ve gained enough equity in your home to refinance into a loan without mortgage insurance.
3. You’re looking to tap a bit of your home equity with a cash-out refinance.
Your mortgage refinance rate is primarily based on your credit score and the equity you have in your home. You are more likely to get a competitive rate as long as your credit score is good and you have proof of steady income. It is a good idea to run the real numbers with a mortgage refinance calculator before deciding on refinancing or speaking to a banker.