Now is a good time to do so if you are a homeowner thinking about refinancing your existing mortgage. Although interest rates continue to increase, they remain lower than they were a decade ago, giving you the chance to refinance your monthly mortgage payments and lower them.
One of the top factors for refinancing remains to get a decent interest rate to lower your monthly payments. But having the lower rate depends on many factors, such as your financial condition, credit score, and the refinancing lender you have chosen.
Bear in mind that mortgage refinancing comes with all the same procedures and fees you faced when you got your home loan for the first time, such as paying for a home assessment, title insurance, inspection, documentation of records, etc.
Make sure you do your research and estimate each item’s cost while looking for the right lender. Some lenders tout a low rate to get you in the door but charge higher escrow and processing costs than others. They know it would be hard but not impossible) for you to walk away from the process after you have devoted time and effort to a lender.
Make sure you do the following to refinance:
Check Credit Report
It is prudent to review your credit report several months before you speak to a lender to ensure that there are no concerns that will adversely affect the interest rate you earn from your lender. You’ll have time to clear them up if there are concerns before applying for your home refinance.
Prequalify yourself for a Home Loan
Stop by your local credit union once you’re prepared to get prequalified for a home refinance loan. A prequalification will let you know how you can borrow, what programs you have, and what interest rates you are eligible for.