Refinance October 10 2017

Refinance 101

You may have overheard your friend or coworker boasting about all the money they have saved by refinancing their mortgage and it now has you tempted to look into it yourself. A lower interest rate and lower monthly payments sound like a dream! But beware, without asking the right questions, refinancing may lead to unexpected financial consequences. Any decision affecting your mortgage is an important one and you want to make sure you take the course of action that will leave you financially empowered, both short- and long-term. Below we will take a look at what refinancing actually is and determine if it is the right decision for you.

What does it mean to refinance?

A monthly payment of any kind can feel oppressive, especially when they feel like a never-ending commitment, like a mortgage. That’s why lots of folks look for ways to reduce their monthly debts through refinancing.

When you refinance you are essentially paying off your current mortgage with a new one.

The new mortgage usually comes with a new interest rate, payment term, and/or balance. People will typically refinance to take advantage of low-interest rates or to make use of the equity they’ve grown in their home. When dealing with debt, the best rule of thumb is to have as little of it as possible and to get rid of it as soon as you can—and refinancing only makes sense when it helps accomplish that goal. Ask yourself the below questions when considering refinancing your mortgage.

What Are Your Goals?

Many homeowners look to refinance in order to lower their monthly payments. Others choose a shorter-term loan with higher monthly payments to reduce interest payments and pay off their mortgage faster. Consider your financial goals and how refinancing your mortgage could make a difference to you. 

Calculator - Should I Refinance?

What Is Your Current Financial Standing?

Don’t confuse refinancing as a “Get Out of Debt Free” card, there are certain upfront costs that are required. You will want to get a good sense of your financial standing by charting out account balances, current earnings, and debts.

How Is Your Credit Score?

 It’s a good idea to run a credit check once a year anyway but it is a must-do when considering refinancing your mortgage. In order to get the lowest interest rate, you will want to make sure your credit score is in tip-top shape. Check your score early in the refinance process to give yourself time to clear up any mistakes you may find. Thanks to the Fair Credit Reporting Act, you’re entitled to one free credit report every 12 months from each of the three main credit bureaus (Equifax, Experian, TransUnion)!

Curious about whether or not refinancing is right for you?

Speak to a Loan Officer today!

Sources: Bankrate.com Bankrate.com, AutoPayPlus.com

Search Results for query

January 25 2017

Mortgage Tip #3 - You should not buy a vehicle

Applying for any new credit, including one used to purchase a vehicle, could result in inquiries on your credit report. This can lower your credit score, which can affect the amount of money you can qualify for....

Read More

January 25 2017

Mortgage Tip #2 - Do Not Co-Sign a Loan

When your loan is being processed, it is best not to co-sign another loan for anyone else. This could cause changes to your credit report, causing a negative effect on the closing of your loan. https://eaglehm-2.wistia.com/medias/uyua34ux7z Still have questions?...

Read More

January 25 2017

Mortgage Tip #1 - Do Not Change Jobs

It is important that the lender knows you are reliable and have a steady income. One way of proving this is to not suddenly change jobs. Since employment verifications happen within five days of closing, it's best not to make any large lifestyle changes...

Read More

January 24 2017

Breaking Down Your FICO Score

Most people are familiar with the FICO score version of the credit score. Scores on the FICO scale range from 300 to 850. However, there isn’t just one credit score range to go by. There are different types of credit scores, and each of them has its own...

Read More

January 20 2017

Tips on Buying in a Tight Market

Increase your chances of getting your dream house instead of losing it to another buyer, with these easy steps. Get prequalified for a mortgage. You'll be able to make a firm commitment to buy and make your offer more desirable to the seller. Stay in close...

Read More

January 20 2017

Tips for Finding the Perfect Neighborhood

The neighborhood you choose can have a big impact on your lifestyle, safety, available amenities, and convenience all play their part. Make a list of the activities, movies, health club, church you engage in regularly and stores you visit frequently. See how far...

Read More

January 20 2017

4 Tips to Getting Your Finances in Order

The beginning of a new year is the perfect time to improve your finances, even though it may sound like a dull task. For some, the idea of sorting out their finances isn’t very appealing, but it can help set yourself up for a solid financial...

Read More

January 14 2017

What Is a REALTOR?

A real estate agent is a REALTOR when he or she is a member of the NATIONAL ASSOCIATION OF REALTORS, The Voice for Real Estate -- the world's largest professional association. The term REALTOR is a registered collective membership mark that identifies a real...

Read More

January 14 2017

What Your Home Inspection Should Cover

Siding: Look for dents or buckling Foundations: Look for cracks or water seepage Exterior Brick: Look for cracked bricks or mortar pulling away from bricks Insulation: Look for condition, adequate rating for climate Doors and Windows: Look for loose or tight...

Read More

First1718192021

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?