Keep tabs on mortgage interest rates on a regular basis so you understand which rates are common and how they weigh against the rate that you’re presently paying on your loan. There are various websites that can give you some idea about the mortgage rate trends.
Find out the amount of closing cost required for a home refinance. Closing costs differ from one lender to another and you must have an overview about how much you can anticipate to pay.
Work hard to shop around for a refinance quote since the rate provided differs from one lender or bank to another. While obtaining rate quotes from lenders, request for a list of all fees necessitated by them on the loan. Compare all the fees while selecting which lender to utilize.
Make a decision on the number of years you intend to stay in this home. Work out the savings every month with the reduced mortgage rate to find out the number of years you would require to get back the upfront closing costs. Do the calculations. Would you pay a higher amount on closing costs than what you would save on your outstanding monthly payments for your present home when you refinance?
Always look for a fixed rate mortgage and not an adjustable rate mortgage. In this way, your interest rate would remain constant.
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