Last week we discussed how to go about refinancing your mortgage. This week we will discuss things you should consider before refinancing. There will be many different loan options available and below is a list of things you should take into account before you refinance your loan.
You can also message us to receive a Free Mortgage Savings Calculation Sheet that will help you determine how much money your refinancing options will save you.
• You are paying closing costs, application fee, title search and the rest. That can be a total a $1000 to $1,500 or more. That’s why refinancing seldom pays if you will be moving soon. You want the new mortgage to be long enough, so your savings offset the closing costs.
• When you start look for the lowest closing costs, you most likely do not want to pay points (points are the amount of money a lender charges at closing). The only time this is beneficial is if your interest rate drops significantly.
• Consider getting a Role-In Mortgage verses the traditional method of paying closing costs up front.
• Be wary of Adjustable Rate Mortgages. Rates are currently at the lowest in generations. The best bet is a Fixed Rate Loan that locks in today’s lower rate for the life of the loan.
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