Home is where the heart is. Home is where you hang your hat. Home… well, you get the picture. The home holds a dear place in the heart, minds and souls of pretty much everyone on the planet.And yet, from a less sentimental perspective, the home can be seen yet another way: it is where we invest a heck of a lot of money.Yes, besides the sentimental and practical value of our homes, they also represent a very significant financial investment for each and every homeowner. Not only are there the up-front closing costs and down payments associated with buying a home, but there are the ongoing, monthly expenses as well. No matter the value or price of your home, it is almost a sure bet that it wasn’t cheap to buy.Maybe you have been able to make your mortgage payments for a number of months or years, but then something happens in life that makes it harder to keep up. Maybe you are able make your mortgage payments, but doing so causes you to sacrifice too much in other important areas of your life. Or, maybe you have been consistently late in making your payments – and may even be risking default.In those cases, a mortgage loan refinance may be in order.When To Consider Mortgage Loan RefinancingRegardless of whether you actually have trouble making your monthly mortgage payments or whether you would just like to save some money like everybody else, an excellent way to reduce your payments is to refinance your loan.While there is no single magic formula for knowing when it is best to refinance your home, there are some rules of thumb that can help. You should consider refinancing if:a. you notice that mortgage rates (such as 15 year fixed or 30 year fixed) have gone down since the time you got your current mortgage by at least 0.5% to 1%b. your credit score has improved since the last time you refinancedc. you would like to extend the term of your loan to 30 years from 15 or 20 yearsd. you have equity in your home that you would like to cash out (turn into cash)Mortgage Loans Refinance: Home Loan TipsIf you are considering refinancing, the next step is to shop for the best deal. Here are 3 tips that can help you make the right decisions:1. Research the best mortgage loan refinance lenders in your area: Start by making a list of at least 5-6 lenders who specialize in refinancing.2. Figure out the ideal mortgage term for your new loan: Use an online mortgage calculator. By plugging in different payment terms (e.g., 15 years, 30 years, etc.) you can figure out how this will affect your future monthly payment amount.3. Apply to multiple lenders: Be sure to apply to all of the lenders on your list. Remember, more lenders means more choices, which means a better chance of landing an excellent rate.Follow these 3 tips to get the best-possible interest rate on your new mortgage loan refinance.
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