If rates have dropped or your borrower profile has improved, there is a chance you could be paying less in the near future. This might be the time to refinance your mortgage.
There are many different reasons to consider refinancing. Depending on your financial situation, you could look forward to one or more of the following advantageous outcomes:
It is the right time to refinance your mortgage if the benefits will outweigh the costs.
There are fees involved in processing a refinance which together add up to the closing costs. Anywhere from 1-5% of the total amount of the mortgage is typical.
A refinance may be the right move in any of the following scenarios:
When you have the chance to reduce your interest rate, and the amount you will save will more than offset the closing costs for the refinance.
When you are having a hard time managing your monthly payments, and want to extend the term of your loan.
When you plan to move in the near future, and currently have a fixed rate loan. The amount of money you could save by switching to an adjustable rate mortgage with a low introductory rate could be worth it.
When you have an adjustable rate mortgage with increasing interest, and you want to lock in a low, fixed rate.
When you have reason to believe you will qualify for a more competitive mortgage now than you did in the past.
When you have debts to consolidate.
When you apply to refinance your mortgage, your credit score, DTI ratio, and income will all be assessed, just as they were when you applied for your original home loan.
For certain types of mortgages, there is a minimum waiting period before you are able to refinance. That amount of time will need to have elapsed in order to apply successfully to refinance your home loan.
To find out if you qualify to refinance your home today, please give us a call at (469) 886-8300. We can help you decide if this is the right time for a refinance, and connect you with a product that will save you money, enhance flexibility, and help you meet your financial goals.
New Frontier Financial Inc. NMLS ID 841930 is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.