Ready to Refinance? Here’s What to Know

When interest rates are low, it’s possible to refinance a mortgage and save quite a bit of money. Refinancing can also be done to shorten the amount of time left to pay off the home or to get lower payments that are more affordable, even if the interest rate is similar. However, it’s important to be prepared before attempting to refinance the mortgage, as jumping in without preparing can lead to mistakes. To get ready for a refinance, there are a few steps to take.

Check Refinance Rates

Check out the current refinance rates to determine if this can help save money after the mortgage is refinanced. Depending on the economy, the interest rates can be lower than they were when the mortgage was originally obtained, so this can help the homeowner save a significant amount of money in the long run. Even lowering the interest rates by one percent can make a difference over the life of the loan.

Figure Out Potential Savings

Determine if a refinance is the right move. If the goal is to save money, see how much money will be saved by refinancing now. If the goal is lower payments, check the current interest rates and determine if the payments can be any lower. If the goal is to shorten the amount of time left to pay off the home, even if it means larger payments, look into how much money could be saved by paying it off faster.

Check Credit Score

Credit scores fluctuate, so check the credit score before applying. For poor to fair credit scores, see what can be done to bring the number up before applying. Higher credit scores do equal lower interest rates, so it’s a good idea to get the credit score as high as possible before deciding to refinance the mortgage.

Find the Right Lender

Shop around for a lender to use. The current lender may not be the best fit anymore, so it’s a good idea to look into what other options are available and find out why they may be a good choice. Take time with this step, as it’s important to find the right lender before applying to refinance the mortgage.

Apply for Refinance

After finding the right lender and looking into the refinance rates, potential savings, and credit score, it’s time to fill out the application. Fill out the application completely and accurately to have a better chance of being approved for the refinance. The lender can likely answer any questions so it’s possible to make sure the application is done right and approved.

If you’re looking for a better deal on your mortgage, it may be time to apply for a refinance. Take the time now to start looking into the information you need to refinance your housing loans with Dollarback Mortgage and see how much money could be saved. Whether you’re looking for lower interest rates, smaller payments, or a shorter payoff time, refinancing could be the right option and could help you reach your goals.