Refinancing your mortgage is a matter of good timing. You want to hit that sweet spot between low rates and high value, and make sure that you get the best possible deal. Even with the jobs report coming in slightly lower than anticipated, the Fed is still itching to raise rates as soon as they can, so is it time to refinance your mortgage, before rates rise or home values stop rising? Here are a few things to look at to determine if you should get your refinance going and lock in your rate today.
- Why Re-Fi
There are many reasons to refinance. You could be looking to:
- Cut your interest rate
- Drop your monthly payment
- Shorten the terms
- Get rid of your ARM (Adjustable Rate Mortgage)
- Get a Cash Out Refinance
- Refinance or Pay Off
There’s a ratio of how much you have left to pay off vs how much you’ll save monthly. You have to determine (and we’ll help you figure it out!) whether it makes financial sense to extend your loan to a new 15 or 30-year mortgage if you don’t have a lot left to pay off. You could be paying more in interest overall by paying less each month. If you have lots of time left, a refinance makes a lot of sense.
- Can you afford the terms
Our loan officers will go over every step of your refinance to help you determine whether or not you can afford new terms. You most likely will be lowering your rate with a refinance to a lower rate, but you can also shorten the terms or take a cash out refinance that may raise your payment but save you money overall.
- How’s your credit
If you have a better credit score and credit history, you get a lower rate. That’s it. It’s very simple. Other factors can affect it, but that’s the main ingredient.
- Lock in your rate
You can lock in your mortgage rate quickly when you apply – which is a great idea with the volatility of today’s market. Rates are low, but they won’t always be. Rates 10 years ago were in the 6’s and they could get back there again.
If you’re ready to lock in that low rate and save thousands of dollars over the course of your loan, call The Home Loan Expert, Ryan Kelley. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, or Indianapolis at (317) 550-1515. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. Don’t forget to follow @TheHomeLoanEx on Twitter for breaking mortgage news and knowledge. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?