In the last two years, home loan interest rates have fallen to an all-time low. Some homeowners might wonder if they missed an opportunity to refinance. What advice do you have for them?
- Refinance your mortgage at historically low rates is possible, but it’s not too late. Refinance is possible at the most favorable time of 9 months.
- The record low home loan rates reached earlier in the year are still in place.
- When deciding whether refinancing is right for you, it’s important to look beyond rates.
- The decision will be influenced by the cost of refinance, personal financial situation and how long you intend to stay in your house.
- We recommend that you speak to your Beverly Hills mortgage broker to discuss your options.
What are the top reasons to refinance your home?
- A refinance might be an option.
- Reduce your monthly payments
- Reduce the term of your loan.
- Build equity quicker
- You could lower your monthly payments if interest rates are lower, or your credit score and financial situation have improved after you received your current mortgage.
- A shorter term may be more appealing to you. Because you pay back the loan faster, shorter-term mortgages usually have lower interest rates.
- Your monthly payment will likely increase. If there is enough money in the monthly budget, a shorter-term mortgage could result in significant savings.
- You may be able move from a 30-year mortgage to a shorter-term one with only a slight increase in payment, as rates are so low right now.
Could you please share additional benefits of refinancing?
- For many of the reasons mentioned above, refinancing is a great option. If you’re looking to change from one type to another, refinancing can be a great option. Refinancing is an option if your mortgage is not the right fit.
- If you are currently paying an adjustable-rate mortgage but want to have a fixed interest rate and a stable monthly payment, then you can switch to a fixed-rate loan. It all depends on how long your plan to stay in your home.
- A cash-out refinance is another option. This requires a new mortgage that repays your existing loan and provides you with cash at closing. There may be equity in your house that you want to invest, improve or pay off high-interest debt.
What is the first step in refinancing a homeowner’s home?
- You should take a close look at your finances, just like when you buy a house.
- Your credit score should be in good standing. This can be done quickly by paying down credit cards and other high-interest loans below 30% or 10%. Waiting until the new balances are reported to credit bureaus will help your credit score.
- This will demonstrate to banks that you are responsible borrower. It will also lower your credit score, which will result in lower mortgage rates.
- Then, get pre-qualified. This is an important step as it will estimate how much you can afford to borrow on your refinance loan.
- We only need your most recent mortgage statement, and your insurance page showing how much you have paid and when it is due. Beverly Hills Mortgage Brokers are able to look up property taxes and run accurate numbers with escrows.
- Beverly Hills Mortgage Brokers invite you to have a conversation about your mortgage lender.
- A mortgage lender that you feel comfortable with and who can act as an advisor is essential. The process will go more smoothly and quickly if you have the right team.
How do homeowners get in touch with you if they are interested in refinancing their home?
Contact a mortgage broker. Beverly Hills Mortgage Brokers are important because they will have to handle sensitive information.