There are certain instances where it would be an advantage for you to refinance your home. Your primary consideration in refinancing your home should be to save money.
Several ways for savings might be to lower your interest rate, lower your monthly payment, shorten the term of your loan, incorporate balances on high-interest unsecured debt, reduce debt-to-income ratio, eliminate your private mortgage insurance (PMI), obtain financing for repairs that would significantly improve the value of your home, or for college or medical expenses.
If you find that you will save money on a refinance for your home loan, then you should consider your options. Keep in mind that your first and foremost goal will be to find a lower interest rate.
Once you have decided what type of loan you will want–a conventional or government-backed loan–a traditional or adjustable rate mortgage, you should first contact your current lender and see what kind of interest rate they can offer you. Make sure you ask for all fees and charges. Then check to see what other lenders are offering, but be careful, make sure the lender is reputable.
Put all this information on a spread sheet so you can compare the benefits of each. Note your savings of each in a final column. This will help you make your decision.
Now you’ve done all your research and you’re confident you will receive the desired outcome (to save money), sign on the dotted line.
For further information, please contact me at 304-822-4350.
Until next time,
Sandra Hunt, Broker
ABR, ABRM, AHWD, CRS, GRI, SFR, SRES
