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Tips for Mortgage Refinancing

Refinancing your home can make a lot of sense.  But before you jump in, do a little research to see what makes the most sense.  Follow these important steps and you can’t go wrong.

Mortgage Refinancing – Step 1:

Make sure you know the terms of your current loan.  You don’t want to do something foolish, right:

  • What kind of loan do you have now?  Fixed or Adjustable?
  • What is the term of your current loan?  30 years?  15 years?
  • What is your current interest rate?
  • Is your rate going to change?
  • How many years remain on your current loan?

Step 2:

Identify what you are trying to do:

  • Are you just trying to lower your rate and payment?
  • Do you want cash out to pay bills or to do some remodeling?
  • Are you trying to convert your loan to a fixed rate?

Step 3:

Determine what type of loan is best for you:

  • Fixed rate loans – these are the most popular loans today.  Safety is everything to most borrowers, and risky loans are no longer in favor.
  • Adjustable Rate Loans – these loans are only popular when rates are significantly lower than fixed rates.  In this market, you have to weigh the risk and reward.
  • 30 year fixed vs. 20 year fixed vs. 15 year fixed.  Today’s low interest rates offer you the opportunity to save tens of thousands of dollars over the life of your loans and eliminate years of payments.  Look at the numbers below to see how much you can save with a shorter term loan.

Call Choice One Mortgage today to see if Refinancing your home makes sense.