With the economy fluctuating, many homeowners may be considering refinancing their mortgage. While this may be a good option for some, it’s not the right fit for everyone. Here are three things to ponder before refinancing.
Check your credit
Always keep an eye on your credit score, but if you’re looking to refinance, it’s even more critical. The higher your credit score, the lower interest rates you’ll likely receive. You may even end up paying more in the long run if your score is on the low end.
Think about the future
Before refinancing, you need to know your long-term goals. If you’re looking to reduce your monthly payments or make them as low as possible, you’ll want to find something with a low interest rate over a long period of time. If you want to pay off your loan quickly, look for something with the shortest time period at a rate that you can afford. The shorter the loan life, the higher the principle payment each month, but with a long term huge benefit to your wealth building.
Look at different options
As with anything, look at a number of different lenders before you make a commitment. Talk to your current lender first to see what options they’ll offer. After that, you can look online at other lenders to see if their rates are comparable, though I caution you on using an out of town lender. I have experienced many closing delays due to lending issues with out of town lenders. But, don’t be afraid to look around to see what works best for you and your needs.
If you have questions regarding real estate in our area, Cheyenne and Laramie County, Wyoming, then please connect with us, so we can help you get the answers you need. We know most people don’t have the time or desire to learn all things real estate, so we do it for you to save you time and money. Call us at 307-635-0303 or visit us online.