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So- you’ve owned your home for some time, have things changed in the economy or your finances since you bought your house?
It might make sense for you to look into a mortgage refinance—getting a new home loan and paying off you’re existing one, but will it save you money?
The Top 3 Questions To Ask When Considering a Mortgage Refinance
Here are our top three questions to ask yourself when considering a mortgage refinance:
- Have interest rates gone down since you closed on your mortgage?
Changes in the economy can cause interest rates to fluctuate. If interest rates have gone down since you closed on your existing mortgage, and you qualify, a lower interest rate almost guarantees a lower monthly payment and savings for you.
- Has your credit score improved since you closed on your mortgage?
If you credit score has improved since you closed on your current mortgage, you are likely eligible for a lower interest rate than you were originally and may even qualify for a different loan type.For instance, if your current mortgage was an FHA (Federal Housing Administration) loan, you probably still pay private mortgage insurance. A higher credit score could mean you qualify for a conventional loan and would no longer have to pay for the private mortgage insurance.
- Is your home worth more than it was when you closed on your mortgage?
If your home is worth more than it was when you got your existing mortgage – either because prices in your area have increased or you’ve had the home long enough to build equity, you may qualify for a cash-out refinance– refinancing for more than the balance of your mortgage and taking the difference in cash.
If you find yourself answering “yes” to any of these three questions, a mortgage refinance might make sense.
Speak with an experienced mortgage banker so you can discuss the option that is best suited for you –and could save you money on your monthly mortgage payment, and over the life of your loan.
This video is intended to only provide a demonstration of options available to consumers. Qualification criteria will change with each mortgage loan type. Examples of some qualification criteria would be employment history, primary residence occupancy, credit score and/ or income of the applicants, even the size of the down payment and loan-to-value assessment. The Mortgage Insurance and its requirements can vary depending on the loan type. It is important to speak with an experienced loan originator to inquire about qualification and eligibility requirements for mortgage options. Please speak with a financial advisor to learn about any tax related implications prior to making your decision.
Capital Bank Home Loans is a division of Capital Bank, N.A. Equal Housing Lender. FDIC Insured. NMLS#401599.