For a mortgage refinance to be worth it, it needs to be the right time. Wondering if that time might be now? Below, we go over some signs that it could be time for a refinance. If any of these apply in your situation, refinancing your home loan could save you money.

Tips To Refinance Your Mortgage

1. Your neighbors are paying a lower interest rate. One sign that refinancing might make sense is if the interest rate you are paying on your mortgage is higher than that that many of your neighbors are paying, assuming that your neighbors have similar financial situations. Such a scenario might indicate that on the whole, interest rates are now lower than they were when you signed on your mortgage. It does not make sense to continue to pay your original mortgage rate when refinancing would allow you to start paying today’s lower rates.
2. You have a higher credit score. Improvements in your credit score since you took out your home loan may also indicate that refinancing would be worth your time and money. All things being equal, you should qualify for a lower interest rate.
3. Your income has changed. Are you earning more than you were when you first took out your home loan? That could also be a sign that refinancing makes sense. On the other hand, are you earning less? That also may be a sign that refinancing is a good idea.
4. The rate for your ARM is about to go up. If your adjustable rate mortgage interest rate is right about to increase, your home loan is about to become more expensive. Refinancing to a fixed rate could be the key to preventing that extra expense.
5. The values in your area are increasing. With the increasing values you may be able to refinance and remove mortgage insurance.  If your loan was an FHA loan, you may have mortgage insurance on your home for the life of the loan. You can pull cash out to restructure and consolidate high interest credit card debt.
6. Pay off your home sooner. You may benefit from shortening your term to a 20 year or 15 year term and still keep your payment very similar to what you are paying now.  Many lenders offer specific target terms such as 24 yrs or 18 years which can keep you on the same pace of paying off your loan without having to go back and start over.  That way you can still get a lower rate and keep your term the same.
7. No out of pocket costs. One advantage of refinancing, different from when you purchased your home, is that many lenders offer you the ability to roll your costs into the loan so that you do not have any out of pocket costs.  Some lenders offer a lender credit which can help offset the costs that are rolled in. The lender credit is obtained by picking a higher rate giving you a lender credit.  This lender credit can help offset the closing costs which can make sense if you are planning to move within 5 years.
8. You are not making ends meet. One more sign that you might need to refinance your home loan is if you are not able to comfortably or successfully pay your bills each month. In order to make your home loan more affordable, you can extend its term with a refinance. With more time to pay off the mortgage, its monthly cost will decrease. You will then be more likely to be able to keep up with all of your monthly expenses.

Refinance Your Home Loan Now With Grandview Lending

If you think the time to refinance your mortgage is now, Grandview Lending Inc. is here to help you make it happen. To schedule your consultation, please call us today at (317) 255-0062.