What is a Mortgage Refinance?
People get mortgages to make home purchases possible. Falling interest rates and other economic factors might spur borrowers to look for ways to save money on their home loans. Refinancing one’s mortgage is an option many homeowners consider.
Advantages of Refinancing a Mortgage
Before you begin, it is important to consider why you want to refinance your home mortgage in the first place. You want to refinance for the right reason. So do you want to:
- Lower your interest rate,
- Shorten your mortgage term,
- Use the equity in your home to pay off or consolidate debt,
- Eliminate PMI (Private Mortgage Insurance), or
- Convert an Adjustable Rate Mortgage to a Fixed Rate Mortgage?
How to Refinance your Mortgage
- Research your homes current value: Check your neighborhood for current sales of recent homes like yours. Talk to a realtor or look up your home’s approximate value online (Zestimate on Zillow and other online home value sources are available but not always accurate).
- Learn your credit score: Check your credit history. There are many online resources to help you understand and know your credit score. Keep in mind, these may not be as accurate and up-to-date as working with your lender who will pull a tri-merge (all three bureaus at once).
- Gather Paperwork: This may be a bit tedious these days because so many of us do our financial business online. But, at the minimum, you’ll need to gather, print, or download the following: current mortgage statement, tax returns, pay stubs and bank statements.
- Use our free Refinance Advisor
Work with a Mortgage Refinance Specialist
The typical rule of thumb is that if you can reduce your current interest rate by 0.75% to 1% or higher, then it might make sense to consider a refinancing move. But, since lowering your monthly note may not be the reason you want to refinance your mortgage, you will be well served by working with a mortgage refinance specialist. The mortgage refinance specialist will be able to discuss pros and cons of all refinancing options.
Kara Davis is a Trusted Mortgage Refinance Specialist
Kara Davis from Crew Lending is happy to help her clients with all of their mortgage refinancing needs in Sulphur, Westlake, Lake Charles and the entirety of Louisiana. For those looking to refinance to shorter terms and a lower interest rate or consolidate debt, Kara Davis can help! Click here or call 337-842-0115 with any questions you have about your refinancing your mortgage!