Cheap Home Refinance Rates
Maybe you've got too many bills and not enough money to pay them all. Or maybe you've wanted to take that dream vacation for years, but could never save up enough money for it. It could be that you're running out of money in the kids' college fund and need a bit more to get that last child through school. Whatever the reason, we can help you find the least expensive home refinance rates so you can get the money you need.
One thing to remember is that the interest rate you pay when you purchase a home is based on your down payment and credit rating, as well as the prevailing interest rate. When you refinance, you're trading a higher interest rate for a lower one, and this will end up decreasing your monthly payment.
If you want to pay your home off sooner, you can change from a 30-year loan to a 15-year loan. This saves you a lot of money in interest, so if you keep the same payment amount that you had on your 30-year loan, more of that payment will go towards principal, and your equity will build up faster.
Most particularly, if you are in an adjustable rate mortgage, now is the time to refinance and get a fixed rate mortgage.
Watch out for hidden fees
Lenders sometimes add fees for their services that they refer to as "points" and add to the mortgage interest rate. When you're shopping for refinancing rates, make sure to ask about points, fees, and extra charges before you make any final decisions.
Other expenses you should expect to see include credit report fees, appraisal, application, loan origination, lock-in, pre-paid interest, attorneys' fees, and closing costs. Also, make sure you won't be penalized for paying off your old mortgage early.
Should you decide to have any fees rolled into your new mortgage, keep in mind that this increases the amount of your mortgage, and thus, reduces the equity in your home.
Benefits of refinancing
If you currently have a high debt-to-income ratio, refinancing in order to pay off those debts can have a very positive effect on your credit rating and can make you eligible for lower interest rates on credit cards, and it could even lower your insurance premiums.
Refinancing with a home equity line of credit could free up some money for any emergencies that might occur, such as an unexpected hospitalization.
Think about it
Think about your reasons for refinancing, and talk it over with your family. Now is a great time to tap into your home's equity. Let us help you find the perfect, low-cost mortgage refinance.