Posted on: 4 January 2016Share
If you purchased your home when your credit score wasn't perfect and when interest rates weren't at your lowest, it may be time to refinance. If you have never considered refinancing but you want to save money on your mortgage, now is a great time.
There are many things to consider when you refinance your mortgage, and you don't have to refinance with the original lender you got your mortgage through. Here are just a few of the things you should ask about when you talk with different mortgage companies about the option to refinance.
15 Year Mortgage
The 15 year mortgage is filled with many different benefits for homeowners. You are going to pay off your home far sooner than you would with a traditional mortgage, depending on how long you have already been paying on the house, and you are going to build equity in the property at a fast rate. You'll also pay less in interest overtime, and you can soon have an asset that you don't owe money on, which improves your net worth.
Get a Lower Fixed Interest Rate
If you are able to refinance and you are only to get an interest rate that is 1 percent less than what you're paying now, this is still a huge discount. You'll be saving thousands over the life of your mortgage, and that's money that you can put away for retirement. Make sure that the interest rate is fixed, which means the mortgage company can't change it on you at any time.
Avoid Private Mortgage Insurance
If you are getting to the point in your mortgage where you will no longer have to pay PMI, you'll want to talk with the refinance loan officer to make sure you can put enough money down, or that you have enough equity that you won't have to pay PMI on your new refinance loan. This can save you hundreds a month.
If you are currently dealing with an adjustable rate mortgage or you think you can get a lower interest rate on your current mortgage, it's time to find a lender that can help you refinance to save. You want your home to get paid off as soon as possible so you can stop carrying the burden of your large mortgage every month, and you want to know what available options you have to start saving money right away. For more information, contact companies like Liberty Escrow Inc.