Many people have thought about refinancing their home with today’s economy. Refinancing can save you a lot of money but you must know the facts.
Home refinancing is a great option for people looking to lower their monthly payments, get money for home improvements or even avoid foreclosure.
Realestateabc.com put together some great tips to ensure you are considering all that needs to be considered before refinancing your home.
Interest rates are still at historic lows but the end may be in the near future. Now is the best time to determine if refinancing is the right option for you.
Consider these 3 things:
1. Understand lender fees and points.
Be sure to discuss and ask questions regarding the lender fees and points on your new loan. Making sure you understand the parameters of the loan ensures that there are no surprises, such as last-minute closing costs or higher than expected interest rates.
2. Research prepayment penalties
Depending on the contract details, some mortgages have penalties for prepayment. Call your current mortgage lender and ask them about prepayment penalties. Even if you have a penalty, it might still make sense to refinance based on the amount of money you’ll save.
3. Obtain a variety of refinancing quotes
Shopping around for quotes from a variety of companies is a smart idea because each one will offer you something different. Comparing quotes and contract details helps you pick the best refinancing offer for your situation.