When Should You Refinance

When should you refinance?  It’s a topic on every homeowner’s mind right now, with rates at rock bottom lows and home values skyrocketing.  It’s the time to get your rate down and save thousands of dollars.  This is life-changing money.

We read a study by the National Bureau of Economic Research (NBER) and they say that $5.4 billion in potential mortgage savings was unused by people that could use it.  These are people just like you or me who could use that money to help pay bills or just live a better life.  Here’s a few ways to determine if you’re in that group, and if a refinance is right for you.

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.

Get Started

Call The Home Loan Expert, Ryan Kelley and take advantage of lower mortgage rates to buy your home or refinance and save money. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555.  

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?

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