Should You Refinance Your Current Loan?
Before you refinance your current loan, you should ask your friends who have received a refinance loan in the last year. Ask them what to expect and get any advice they may share with you? I would also ask them who their loan broker was and if they would recommend them. Ask them what interest rate they qualified for and if they had to pay any points to get the loan. Try to get a good understanding of the loan process before applying for a refinance loan so you can have a good idea on whether you can qualify for the new loan.
Get Answers from Loan Brokers When Debating Should you Refinance your Current Loan.
- Talk to your loan broker:
- I recommend sitting down with a few loan brokers so you can choose the best rate for you (you will need to double app.)
What Will Affect Your Ability to Qualify for a Refinance Loan and Get the Best Interest Rate?
- Your FICO score affects your rate– a good score above 700 FICO will allow you qualify for the best rate possible, a lower score does not
- If you are a w-2 employee with income you can prove, this helps getting a refi
- If you have a lot equity in your home
- If you have good income to debt ratio, you have very little to no debt.
- If you only have one mortgage with no second home
Should You Refinance Your Current Loan? What is My Current Interest Rate?
If your current interest rate is 6% and you can qualify for a 5%, you should refinance your current loan. If you have an interest rate of 5% and you qualify for a 4.75% interest rate, it may not be worth you refinancing your current loan between the points you may have to pay, escrow fees, appraisal, and other fees. Check out this website I found to help make an informed decision on Should you refinance your current loan. www.zillow.com/mortgage-calculator, www.mortgagecalculator.org or www.refinancecalculatormortgage.org.
You should have some clear goals before jumping into refinancing your home. I encourage you to ask a lot of questions and get some advice from your friends and family or ask your local Real Estate agent.
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