Mortgage loan refinance - 7 important considerations
Many homeowners struggle with the decision as to whether or not now is the right time to refinance their existing mortgage. There are several factors that you should consider while deciding if it’s the right time to refinance.
- • Has your credit score improved?
- • Have interest rates dropped?
- • Is there equity in your home?
- • Do you have a second mortgage?
- • Do you want a longer or shorter term?
- • Do you want to switch from an adjustable rate to a fixed rate?
- • Do you want to get cash out of your home’s equity?
If you have a first and a second mortgage on your home, you may consider combining them into one loan. If you go for a longer term, this will reduce your monthly payment however, you will be paying a mortgage for a longer period of time. A shorter term will have a higher monthly payment, but you will pay off your loan in a shorter amount of time, and save money in the long run.
If your credit score has improved, you will be able to get a better interest rate which would mean a lower monthly payment. The lower the interest rate, the lower your payment will be. If there is enough equity in your home, you can get cash out of your refinancing to make home improvements or pay off other bills.
Speak to a professional loan agent to find out if now is the right time to refinance your existing mortgage.
Call the lending experts at Midland Mortgage to find out if a mortgage loan refinance makes sense for you. Call 803.765.1680 or toll–free 800.854.9484.