During times of uncertainty, the question on most people’s mind is how to save money. If you are a property owner refinancing your mortgage can help you meet your savings goals. Refinancing involves changing your existing mortgage for a new one with more favorable terms.
Mortgage refinance is a strategy to help homeowners meet their financial goals. When you refinance your new lender pays off the existing mortgage and replaces it with a new one. Many people refinance to reduce their monthly payments, but a term modification for a example a 30-year to a 15- year mortgage terms helps if you want to pay-off the debt owed quicker. Refinancing may provide you monies from your home equity or it may provide a new mortgage with ideally more favorable terms.
Once you’ve decided that you want to refinance your property you need to keep in mind that your credit score is key, it will for the most part determine the interest rate you can get. Once you’ve “shopped” around for a new lender and have determined the best one for you, you need to gather all your personal information, paystubs, bank statements, and everything else your lender requests. Although refinancing has many benefits it also has some draw backs. You will need to pay all new closing costs which can be costly. It is also a good idea to check with your current lender to see if you will be assessed a pre-payment penalty.
When trying to decide whether to refinance, the best thing to do is the math! Figure out how much you will save and if it is worth the fees associated. If your costs are too high it will take longer to recuperate the expenses in terms of the money you’re saving on a monthly basis. If you are planning on staying put in the property refinancing could potentially put lots more into your wallet than what you have to pay in fees.
If you an questions or concerns regarding refinancing your current home loan feel free to contact us at 305-227-4030 or legal@raygarcialaw.com.
Law Office of Ray Garcia, P.A.
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