Mortgage refinance rates have dropped again to a historic low this week, prompting a record number of borrowers refinancing their homes. In fact, according to the latest weekly survey conducted by the Mortgage Bankers Association, refinancing applications are up at an astounding 124% from last year’s benchmark.
So, 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:
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, Newport Beach, CA, can present 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 – can fluctuate at any time. Therefore, if you want to capitalize on record low refinance rates, it makes sense to do so sooner rather than later.
What are the things to consider to qualify for refinancing?
Qualifying for a mortgage refinancing is quite similar to qualifying for a new home mortgage. But these are some specifics you should know about:
- Lenders would want to see that you have sufficient income to take care of the cost of the new home loan
- Your credit score should be in good shape
- You have manageable debt obligations
- You have 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, Newport Beach, CA, you will likely be able to save on mortgage payments when you can secure a lower interest rate. Put it this way: 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 as this area can provide great deals also. 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, Newport Beach, CA? Contact us today at 800-810-PLUS (7587).