The current numbers show that mortgage refinancing rates continue to traverse in their downward trajectory. The average this week was, in truth, another historic low. And the market seems to agree with the trend as there’s a record number of borrowers refinancing their homes. In fact, according to the latest weekly survey conducted by the Mortgage Bankers Association, refinance applications are up at an astounding 124% from last year’s benchmark.
So, the question then becomes: are you going to jump on the bandwagon? Should you consider applying for a home refinance? Below are the answers to the four frequently asked questions regarding mortgage refinancing that may help in your decision:
Is mortgage refinancing a sound idea right now?
According to Freddie Mac, the average interest rate on a 30-year, fixed-rate loan right now is 2.79% – that is over a full percentage point lower than it was a year ago. It speaks a lot to suggest that going for a mortgage refinance, Destin, FL, opens up opportunities to find great deals in the current environment – and that despite the COVID-19 pandemic. Refinancing a mortgage is all about capitalizing on record-low interest rates.
However, interest rates – as we know them – fluctuate. Therefore, if you want to capitalize on record low refinance rates in Destin, FL, it makes sense to do so sooner rather than later.
How to increase my chances of qualifying for refinancing?
Qualifying for a mortgage refinancing is quite similar to qualifying for a new home mortgage. But these are some specifics you should consider:
- Having a sufficient income to take care of the cost of the new home loan
- Working to get your credit score in good shape
- Keeping your debt obligations manageable
- Having a sufficient amount of equity built up in the home to borrow against (this is if you are doing a cash-out refinance)
Does refinancing lower my monthly payment?
With the current trends in a mortgage refinance, Destin, FL, you will likely be able to save on monthly mortgage payments when you can secure a lower interest rate. And the less interest that accrues with your loan each month, the less money you will have to pay overall. Besides, if you switch from a 30-year loan to a 15-year loan, your lender will likely give you a better interest rate, helping you to save even more.
Can I negotiate for a better mortgage refinance deal?
There are several ways you can negotiate a mortgage refinance deal. For example, when you get your finances in good shape, you can be given the best interest rate possible. You may want to explore some of the lender fees also as this area can provide great deals. The bottom line is that the stronger your application, the lower your interest rate can be.
Online looking for a reputable company that offers a mortgage refinance, Destin, FL? Contact us today at 800-810-PLUS (7587).