Refinancing a mortgage loan requires you to take into consideration your current financial situation and the marketplace to determine the best way to save on your loan. Our team at Summit Mortgage Corporation has decades of experience helping clients with refinancing their mortgage loan products, and in this post, we’ll explore our tips for the refinancing process.
Take on the process soon
Rates are expected to rise steadily over 2019. So, it’s important that you’re proactive and speak with a lender about refinancing your mortgage loan in the coming months.
Have your documents ready
You should be prepared in case market rates drop quickly over the coming months. Have your financial documents in order and be ready to speak with your local lender about the various loan options in the marketplace.
Tap into your home’s equity
One great option for many homeowners is to tap into their home’s equity with a cash-out refinance. This will provide you with more money for upgrading the home and increasing its value.
Work on your credit score
Take the time now to work on your credit score to prepare for the refinancing process. Your credit score will be one of the leading influences on how much interest you pay on your mortgage loan, and so it’s the ideal time to begin lowering your debts and building your income. Speak to your local lender about ways in which you can build your credit.
Refinance to an ARM
An Adjustable Rate Mortgage could be the ideal way in which to refinance for the years ahead. An ARM often comes with a lower initial interest rate which grows over time, and so if you’re considering selling in the near future, refinancing to an ARM can help you save on interest in the meantime.
Refinance to a short-term mortgage
Another option is to refinance to a short-term mortgage, which will allow you to save money on interest over the years ahead. The payment differences between a 30-year mortgage and a 10-year mortgage, are significant and opting for the shorter-term option can help you avoid overpaying on interest.
Our team at Summit Mortgage Corporation can help guide you in the right direction during the refinancing process. To begin, call us today.