What does it mean to refinance my home loan? Why is refinancing a mortgage beneficial? If you’ve been told to consider refinancing as an option, you may be asking some of these questions. Find your answers in the FAQ's below.
How long do you plan on staying in your current home? Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run. Fees and interest rates need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.
Your current loan provisions may issue penalties for paying off your home loan early. Speak with your loan officer to ensure that your refinance rates will cover any applicable fees.
Review your credit report and get a copy of your credit score before you begin the refinancing process. Report any errors you find, and avoid actions that may lower your score. Having a higher credit score is more likely to result in a favorable interest rate and refinancing offer.