“I think it’s the right time for a refinance. I’ve been in my home for 5 years and rates are still really low so there is no reason why I shouldn’t do it now.”
But, that doesn’t mean that you have to do it as soon as possible if you don’t feel ready. You should weigh your options and make sure that this is truly something that’s good for you and your family.
Ask yourself some questions to determine when the best time would be.
How Long Have You Had Your Current Mortgage?
The shorter the better since most refinancing costs come up front, but there may be times when having them longer could help lower your costs depending on how often interest rates drop significantly in a short period of time.
What Is Your Mortgage Rate?
If you have a higher mortgage rate, refinancing could save you quite a bit of money each month. But, if your rate is already relatively low, it might not make sense to refinance since your monthly savings wouldn’t be as significant.
How Much Equity Do You Have In Your Home?
You’ll likely need at least 20% equity in order to refinance without having to pay private mortgage insurance. So, if you don’t have enough equity yet, this isn’t the right move for you.
What Are Your Financial Goals?
Think about why you’re wanting to refinance in the first place. If it’s to save money each month or over the life of your loan, then it might be a good idea to refinance. If you’re wanting to pay off your mortgage earlier or to get cash for other investments, refinancing probably isn’t the best option for you.
These are just some questions that will help you determine if it’s time to refinance your home or not. There are many things to keep in mind when trying to decide on whether this is the right option for you. But, once you weigh the pros and cons, I think most people will agree that it’s definitely worth considering.
Refinancing can be a great way to save money each month on your mortgage and over the lifetime of your loan. So, if you think that this is something that would benefit you and are ready to take the next step, then it’s probably time to start looking into lenders and find the best option for you.
Sourcing a Mortgage Lender for Your Refinance
When it comes to refinancing your home, you’ll want to make sure that you’re working with a reputable lender who can get you the best possible rate. This is something that many people struggle with and they end up going with the first company that they come across instead of finding one that’s truly going to provide them with what they need in terms of rates and customer service.
Luckily, there are some great online tools out there to help you find a good mortgage lender for your refinance needs. Some of the top ones include:
• LendingTree – This is an online marketplace where you can compare quotes from different lenders all in one place. It’s free to use and offers great flexibility by allowing you to refine your search based on factors like loan type, credit score, and more.
• Bankrate – This website offers a wide variety of mortgage rates from different lenders across the country. You can also use their mortgage calculator to estimate your monthly payments and compare different loan scenarios side-by-side.
• Zillow – In addition to their well-known home search tools, Zillow also offers a mortgage marketplace where you can compare rates from different lenders. They have an extensive list of options to choose from and make it easy to find the best one for your needs.
Once you’ve found a few good options, take some time to read reviews from past and current customers. This will give you a good idea of what others have thought about working with them and if they’re a company that you can trust.
If you prefer to work with a more local mortgage lender, you’ll find plenty of options for independent mortgage brokers in your area.