Have you been thinking about refinancing your home to take advantage of the historically low interest rates? If so, you do not want to make a mistake that causes you to feel as if you're taking a step backwards in terms of paying off your home. Here are some tips for refinancing your home.
Ask For Flexible Terms
Many people wrongfully assume that they have to jump into a new 30 year mortgage if that is what they originally got when they purchased the home. For example, you may be 5 years into your 30 year mortgage and not want to restart the mortgage and pay it off 35 years after you originally got it. Thankfully, many mortgage lenders are willing to be flexible with the terms of the mortgage to give you that length that you want.
Consider asking for a mortgage that picks up where your old one left off so that you have the same end date. The shorter term can also result in a lower interest rate, which helps save you even more money over the life of the loan.
Get A Loan That Allows Early Payments
It's important to make sure that the terms of your refinance allow you to make early payments without penalty. While your desire to refinance now may be due to your financial situation and wanting a lower monthly payment, that may not always be that way in the future. You will want the ability to make additional payments and pay off your mortgage faster than normal, which will save you in many months of interest which can add up over time.
Work With A Refinancing Broker
If you want to ensure that you are receiving the best possible rate on your refinance, consider working with a mortgage broker that specializes in home refinancing. They are going to look at your financial situation and determine what kind of refinance you will be eligible for. The broker will then work with multiple lenders to find the best interest rate possible.
The reason that a refinancing broker is such a great option is because they are going to get the quotes faster than you would be able to by working with each lender individually. This saves time and hopefully saves you money because more lenders will give you quotes that you can compare.
Reach out to a financing broker to find out more about how they can help you get a lower interest rate on your home.