Refinancing your mortgage can be advantageous—but only if you’re able to secure rates that are lower than the ones you have currently.
In fact, mortgage professionals recommend that you seek rates that are at least one percent lower than your current ones—or else, refinancing might not be so financially beneficial.
The question is, how can you ensure that the rates you’re getting are truly the lowest possible? Here are a dozen tips to help you.
How to Get Low Mortgage Rates When You Refinance
-Improve your credit score: ideally, get it to a 740 or above. Pay off debt, make payments on time, and correct any errors on your credit report. This is one you can start months and even years before you start thinking about buying a home.
-Increase your equity: making extra principal payments can help, or simply give it more time.
-Save cash for your closing costs: not folding the closing costs in your mortgage can help with monthly payments as closing costs can be two or three percent of the total mortgage amount.
-Lower your debt: this includes credit cards, outstanding medical debts, school debts, and more. Start making payments as often as you can!
-Make sure that all your financial documents are in order: get organized and prep for a smooth application process.
-Use online loan calculators: there are many useful tools online to help you estimate your monthly payments at various loan terms and conditions.
-Talk with a lender from Loan Fleet: discuss the different loan terms that are available: 15-year, 30-year, etc. Determine which option makes the most financial sense for you.
-Shop around! Don’t just look at one product from one lender, but rather compare a range of them.
-Call Loan Fleet to ask about any specific loan products that are a good fit for you.
-Ask your lender about no-cost refinancing: not having to pay closing costs sounds good, but you will likely have a slightly higher interest rate. This may or may not be a prudent option for you.
-Ask your lender about rates: find out if a fixed-rate or adjustable-rate mortgage (ARM) is the best option.
-Lock in: Once you have made a final decision about your refinancing, ask your Loan Fleet lender about the best time to lock in your rates. He or she may advise you to lock them in right away, or wait for rates to lower.
See if Now is the Best Time for You to Refinance
All of this starts when you call Loan Fleet and ask whether you might be a good candidate for refinancing. If you’re interested or curious, please reach out to us today!