One important rule when it comes to mortgage loans is that you do not need to jump on the industry bandwagon. Just because all are doing it doesn’t mean you have to do it as well. However, if all the indicators suggest that it is a good time for mortgage refi, Jacksonville, FL, then you might take advantage of that opportunity.
Mortgage refinancing, when you get the best deal, can save you some serious amount. A typical refinancer can save about USD 150 per month.
But what are some indicators that tell you it is a good time for mortgage refi, Jacksonville, FL? Consider the following:
- When you cut the mortgage rate by three-quarters of a percentage point. If the interest rate you have been paying is higher than the current mortgage rates, then it may be the right time to refinance your home. Again, that is of course when the difference is significant. For instance, in December last year, the average mortgage rate is at 4.62% versus the 3.82 percent in mid-June this year. That is a significant decline – more than three-quarters of a percentage point, which can save you a good amount of money.
- When you have an adjustable-rate mortgage. The term for this type of mortgage initially has a low interest rate for a certain number of years. However, the rate increases on an annual basis and this can come unfavorable to you as your monthly obligation gets higher and higher. If there is a significant decline in the mortgage rate, you most likely to save money when you refinance into a fixed-rate mortgage before the rate bounces back to an upward trend again.
- Your credit score has recently jumped to excellent. A credit score that is 800 or above is considered as excellent. If your credit score has increased to that range, then it may be a good time to refinance your mortgage. Your credit score is one of the primary factors that determine your mortgage interest rate. The higher the credit score you receive, the lower the interest rate. If you made a loan when your credit score was low, chances are that you have been paying back with a high-interest rate. Now that your credit score is excellent, it can be a good time to refinance to take advantage of a lower interest rate.
Still have questions about mortgage refi, Jacksonville, FL? Contact us at (800) 810-7587.