While home prices have gone up, consumers are getting more bang for their buck by refinancing their homes. Within about six months of owning a home, homeowners can refinance, or finance a new loan on their properties. Moneywise reported families that refinanced in 2020 will save an average of $2,000 every year.
Why Consider Refinancing
Refinancing is a viable option if you need funds for home upgrades and repairs, which can increase the value of the home. Maybe you’d like to lower your mortgage payment to reach other financial goals. Lastly, homeowners can fast track paying their current home loan in full to create future cash flow.
If you think refinancing is a good idea, in addition to the market’s low interest rates, assess your credit score and make sure any income tax payment plans are current, or atleast three consecutive payments have been made as they can affect getting the best interest rate. Use our mortgage calculators to estimate payments under new interest rates here.
Would you like to switch loan programs? Check our programs here.
Where to Start
Once you know why you’d like to refinance your home loan, begin now by completing an application for pre-approval. Locate your loan agreement for all needed information, including the term of your loan and the interest rate. As a pro-tip, you may reconsider refinancing if your new interest rate isn’t atleast one point lower than your current interest rate.
If you need more assistance or just want to talk about your refinancing options, contact us at the Karlton Govan Lending Team at (901) 701-1339. We’re happy to walk you through the process!
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