When you obtain a mortgage, you lock into specific terms. This includes a rate that is either fixed or variable. Refinancing allows you to lower your mortgage payment because of a new rate. Follow a few tips to help you accomplish this.
Look at the Equity in Your Home
Having equity in your home will help you with a mortgage refinance. However, even if you don’t have equity, or very little, there are programs such as Freddie Mac and Fannie Mae that may still accept you. In some instances, you can refinance your home for what it is valued and get a check for the difference due to the equity that you have built.
Explore Your Credit Score
Your credit score is going to be a big part of securing the best possible mortgage rate. Before you apply for the refinance, try to get your credit score as high as possible. This can be done by paying off debt, closing accounts that are no longer needed, and making sure that all bills are paid on time.
When you finally apply, you will be able to get lower rates with a higher credit score.
Determine Any Special Qualifications
There might be unique qualifications that you fall into, such as being a veteran. If you have a VA home loan, you might qualify for a particular VA streamline loan. You might also be able to gain considerations because of the home being a second or third home.
Use a Calculator
A mortgage refinancing calculator should be used throughout the process. The benefit to this is that you will see what your new principal and interest will be with the new rate that you are given. You might be able to control how much the loan is for based on the home appraisal and the amount that you owe on your existing mortgage.
The Tuttle Group’s Refinancing Calculator can be found here: thetuttlegroup.com/refinance-calculator
A mortgage refinances the potential to save you quite a bit of money on your mortgage payments. If there are lower rates in place than when you initially bought your home, it might be worth exploring the options available.
Send us a note, we are happy to help you determine your home’s value and possible refinancing options.
