So, you want to refinance your mortgage? You want to take advantage of incredibly low refinance rates?
While this may be one of the best financial decisions you ever make, don’t go down this path until you better understand the process and what it entails.
There are many steps you can take to successfully refinance your mortgage without adding stress to your life. Here’s what you need to do:
1. Review Your Current Mortgage
This is where it all starts. You must have a clear understanding of the current details, terms, and conditions associated with your mortgage.
How much money do you owe on your current mortgage? What is the interest rate? How many years are left on the loan?
Answering these questions will help you determine if you’ll actually save money in the long run. Remember, there are fees associated with refinancing. You must make sure these are offset by the savings.
2. Find the Right Lender
Just as you did when securing your original mortgage, finding the right lender is critical to your current and long-term financial health.
There are hundreds upon hundreds of local and national lenders willing to work with you. However, you’ll only choose one.
If you need help with the comparison process, consult with a reputable mortgage broker. They can do all the leg work for you, thus allowing you to make the final decision based on their findings.
3. Submit an Application for Pre-Approval
When you’re ready to learn more, this is the next step in the process.
The goal here is two-fold. First off, you want to find out if you qualify to refinance your mortgage through the lender. Secondly, this gives you a more accurate idea of the interest rate you can secure.
If everything checks out, you can then work with the lender to start the formal application process.
4. Follow Your Lender’s Guidance
Your lender wants the process to go as smoothly as possible, so follow their lead.
This includes everything from providing required paperwork to helping setup the appraisal of your property.
Tip: if you choose a mortgage lender with a good reputation for customer service, it’s easier to stay on course from beginning to end.
There may be other steps you need to take, but these four should at least put you on the right track.
Once you’re 100 percent sure that now’s the time to refinance, there’s no reason to hold back. Interest rates won’t always be this low, so take advantage while you can.
Have you ever refinanced your mortgage? What was your reasoning for doing so? Are you still happy with your decision?