Are you planning for a refi mortgage, Jacksonville, FL? If you do, the following tips may be able to help increase your chances to achieve success.
As mortgage brokers who have been in the industry for decades, we can attest that preparation is so important for you to succeed in refinancing your mortgage. Here are some important tips that you might find useful:
On why you should be ready when rates drop
Being ready for a refi mortgage, Jacksonville, FL, isn’t just about catching your target low rates before they rise, but also avoiding a backup in refinance applications should rate suddenly fall. Meaning, you have to be in the pipeline ready to go when the interest rates start moving down; else, you have to get in the back of the line, which, oftentimes, can cause you missing the dip in the rates.
On why your credit score should be in good shape
The thing is, even if you act fast enough to catch your target interest rates, the effort may not be worth it if your credit score is not in good shape. Take note that the rate is a key factor that affects your monthly payment. Just because low rates are available does not mean you will qualify for them. The good news is, you can improve your credit score (some, in fact, experience improvements in just three months) by doing the following:
- Checking your credit report for errors
- Avoiding maxing out your credit limit
- Paying bills on time
On how refinancing for a shorter term can save you money
There are two ways you can save money when refinancing into a shorter-term fixed-rate loan: (1) The interest rate is lower than a 30-year fixed-rate loan; and (2) you will be paying less interest.
Here’s a good example provided by MarketWatch:
30-year fixed-rate: USD 300,000 mortgage taken out in 2010 at 4.75% fixed interest rate
15-year refinance: at 3.50% fixed interest rate
Savings: USD 52,975
Note: Although the original monthly payment of USD 1,565 would take on an extra USD 311 each month, you would save more money in the long run and build equity faster.
If you have more questions about refi mortgage, Jacksonville, FL, do not hesitate to contact us here at HomePlus.
Call us today at 800-810-PLUS (7587).