With mortgage rates hitting all-time lows the past few weeks we are getting tons of calls asking “Is it a good time for a Mortgage Refinance”. That answer depends on a few things. We’ll go into some of the questions you should be asking yourself and lender when thinking of refinancing. This can often get confusing on the questions, savings, and benefit so make sure you call us to review all your questions so we can provide the answers!
Questions we will review together:
What’s your goal? Some folks want to reduce their payment and want the longest term at 30 years and some want to pay it off at a more accelerated timeframe at 15-year mortgage.
What’s your current rate? Is it a fixed or adjustable
Do I pay Private Mortgage Insurance? Often times when home prices go up at a rapid pace like the last few years the private mortgage insurance you are paying can be eliminated through a refinance. With the current market conditions, we are helping many homeowners eliminate this extra monthly payment and lower their rate for maximum savings.
How long do you plan on staying in the home? This is a critical question and something you need to give some thought to. If you plan on moving in the next few years the cost of the refinance compared to the monthly savings might not be beneficial. We will run an analysis on this to review your “payback” period on the closing costs.
Do you want cash back? With the Corona Virus / COVID 19 going on many people are investing in improvements back into their property with swimming pools, lawn maintenance, home additions, and kitchen updates.
Our job is to help you identify the savings with a detailed review of your situation. Help you think of ideas and goals you might have overlooked. Rates are now 1-2% lower in most cases than in years past.
What Information do I need for a loan quote?
- Mortgage Statement
- Estimated Credit Score
- Do you want to include taxes or insurance
- What is the approximate value
From here this will allow us to start reviewing your loan options. Once the savings and benefits are discussed and you’re ready to proceed we will send out the complete loan application to verify your credit score, income, and complete application prior to locking in the interest rate. There has never been a better time in the history of home loans to refinance and explore the many great opportunities the current market provides.
Call us today at 281-627-4222 for a free review of your next refinance loan options.
Written By: Steve Head / Top Producing Loan Officer
