Should I Refinance My Mortgage?
Interest rates change over time, and they may currently be lower than they were when you got your mortgage. That’s good news because refinancing is an option! When you refi with Directors Mortgage, you get to take advantage of low interest rates and save a significant amount over the lifetime of your loan.
Understanding the Mortgage Refinance Process
Wondering what the refinance process is like? Given that you’re already a homeowner with a mortgage, the process will probably look pretty familiar to you. The three basic steps of applying, getting approval and closing a mortgage still apply, though this time you won’t have to worry about real estate-related concerns such as putting down an offer on a house in competition with other buyers.
Refinancing can have a major positive impact on your life, and it’s essential that you’re armed with knowledge before making a final decision. These resources can help you learn more about whether refinancing is the right option for you.
Interest rates vary depending on a number of different economic and personal-finance factors. Aside from the standard interest rates that banks use to determine how much to charge borrowers, each individual applicant’s financial situation will further impact what you pay. From debt-to-income ratio to credit scores and more, there’s no one-size-fits-all when it comes to interest rates. The best way to get a feel for whether you can refinance into a better rate is to talk to a Mortgage Specialist near you.
Anytime can be a good time when it’s advantageous to save money and shorten your term. In other words, if interest rates are significantly lower than they were when you got your mortgage, or your financial health has improved significantly, it can be a good time. If your debt-to-income ratio is better than it was when you applied for your mortgage, for example, or you’re seeing news stories about major rate cuts for the first time since you bought your house, then it’s worth exploring your options.
As with many mortgage-related processes, there isn’t a set length of time that we can assign to the refi process. It’s highly individual based on each applicant’s unique financial situation. If you have a very complex personal finance situation with elements like multiple income sources, self-employment or other complicating factors, this can make the process take a bit longer. Still, it’s always worth sticking it out through the process so you can come out on the other side with a better financial future.
Most likely. This does depend on the applicant’s overall risk factors. Factors such as how long you’ve been employed at your current job, how old your home is and how much money you have in the bank can all play a part in determining whether an appraisal is necessary.