There are a lot of good reasons to refinance your property. You can lower your interest rate, decrease monthly payments, even shorten the length of your mortgage loan. Refinancing can be a good way to save money. But just as you prepared in advance for your mortgage application, you need to also think before you refinance.
Here’s what you need to do:
- Determine if a refinance will really help you. Check out interest rates: are they lower than they were when you first financed your home? And if they’re lower, will that make up for the fees that you’ll need to pay (legal fees, loan origination fees, inspections, etc.) as part of the mortgage?
- Calculate what your total savings will be. Determine how much you will save by shortening the length of your loan. Figure out the cost of your current loan, and compare it with the new loan. This will help you calculate the total savings of refinancing.
- Figure out what your home is worth. Lenders refinance homes that are valued at or above the loan amount. By figuring out your home’s value, you can determine your loan-to-value ratio.
- Check out your credit score. It’s a significant factor in lenders agreeing to finance your loan.
- Collect all the financial information that you’ll need. Mortgages require paperwork: tax returns, pay stubs, information on other debts, information on assets.
At Avrus Financial and Mortgage, we’ve been helping homeowners refinance their homes in Florida, Georgia, and California for decades, and we can help you, too.
Why not ask us how… today?