Mortgage Refinance Tips
Take Advantage of Low Rates!
Mortgage rates are hitting record lows, so now is a great time for homeowners to take advantage of that by refinancing their mortgage. Lowering your mortgage interest rate is a good way to save money and reduce the cost of your monthly bills. If you are currently paying a high home interest rate, mortgage refinance might be the best option for you.
Maintain Good Credit
If you have an excellent credit score, you have the best chance at securing the lowest mortgage interest rates. Mortgage lenders prefer to see scores over 680 to offer borrowers the best rates. You may want to run your credit before you refinance to ensure that everything is accurate and to see if there is an opportunity to improve your score.
Is Refinancing Right for You?
Mortgage Refinance might be best for you if you are able to secure a lower interest rate than what you currently have and if you can lower your monthly payment. Start by comparing quotes from mortgage companies to see if it makes sense financially. A home mortgage lender should be able to tell you the lowest interest rate that you qualify for as well as answer any questions you have.
Save Time & Money
I was able to refinance my home and lower my mortgage payment from the comfort of my own home. I just filled out a short form and I received quotes from mortgage companies that could help me and answer my questions. It was so simple! Thank you!
- Stacy M, Oklahoma
Know Your Terms
Home Mortgages 101
Fixed Mortgage Rates – A fixed rate mortgage is a home loan where the interest rate remains the same throughout the life of the loan. As a result, the homeowner has the benefit of a consistent mortgage payment amount that never changes. Typically fixed mortgages are spread out over a specific period of time such as 15 year mortgages or 30 year mortgages. 10 year and 20 year mortgages are also some less popular fixed home loan terms.
Adjustable Rate Mortgages – An adjustable rate mortgage (ARM or Variable Rate) is a home loan where the interest rate on the loan changes periodically based on an index. As a result, the homeowner faces a mortgage payment that could go up or down.
Interest Only Home Loan – A mortgage that allows you to pay only the interest on a loan for a certain period of time (5 or 10 years, etc.) This gives the homeowner the flexibility of having a lower monthly mortgage payment. After the initial period the owner begins payments for the mortgage principle.
Mortgage Refinancing – A process that involves paying off your original home loan with proceeds from a new home loan for the same property. Refinancing your mortgage is usually a good option for a homeowner that wishes to lower their interest rate and mortgage payment to save money.
Closing Costs- A set of costs paid when closing on a new home loan or on a home refinance. The costs consist of a variety of fees surrounding the loan such as recording fees, document fees, attorney fees, survey fees, mortgage application fees, inspection fees, appraisal fees, etc. It is possible to find a home loan with very low or no closing costs depending on your mortgage lender.