Refinance is a great option especially if you have a high interest rate and rates drop-down at least 1% lower than your current rate. But it has to be worth the time and the money put in for refinance to make sense. Refinancing is basically applying for an entirely new loan replacing the old home loan with new terms and rates. Usually a refinance takes less time than a
typical home loan especially if you do a streamlined refinance which usually only takes a couple weeks. But how often can you refinance?
If you just recently refinanced and then the rates drop even lower is it a smart idea to go back and refinance again?
Every time you refinance, creditors pull your history and your credit report and this puts a red flag on your report that you are applying for more money. Too many credit inquiries can affect your credit score especially if you have more than two per year. You can comparison shop though, without dinging your credit history. Comparison-shopping through different mortgage lenders in a short period of time typically only counts as one look.
Fixed-rate mortgages are not as low as they have been. If you have refinanced in the last three years it might not be a good idea to look at your options. If you can get at least one whole percent lower on the interest rate than you currently have you can be saving hundreds of dollars each month. Remember, it costs to refinance which is typically rebuilt back into the home loan so there is very little out-of-pocket costs. Also, when you refinance a home loan you can skip that month which puts a little of that extra money typically set aside for mortgage payments, back into your pocket.
Adjustable Rate Mortgages in Long Beach still have rather low rates in the initial few years. If you are willing to take a chance on the long term This could work. If you expect to sell or move in a few years your savings could well cover the cost of the refinance. At this time it is a good idea to give an adjustable loan some consideration
Refinancing still means you’ll have to pay closing costs and this can be several thousand dollars depending on fees and points and the mortgage lender you choose. Is it really worth it? That’s a question best answered by your lender. As a mortgage broker I can discuss all of your options with you and give you a clear picture of your finances to make an informed decision. If you currently refinanced it may not be the best time, but if it’s been over three or four years, at this point it couldn’t hurt to take a second look. You may be saving hundreds on a monthly mortgage payment.
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Whether you are applying for a mortgage, refinancing your current home, want to learn about the mortgage process or need to find out information about your credit history, our website gives you all the information you need to make an informed decision about your financial future. Contact us today for a personal touch to your mortgage and financial application.