People refinance their mortgages for a few different reasons, such as a more flexible loan term, or to condense a 30-year into a 15-year loan. The most common reason to refinance is simply to get better rates. This means that as you shop around for a refinancing option, it’s vital to really do everything in your power to get the lowest rate possible. After all, you’ll probably just refinance once. You might as well get the maximum bang for your buck.
The big question is, how can you ensure your mortgage refinance is optimally beneficial? Here are a few tips and suggestions from the Loan Fleet team…
Improving Your Mortgage Refinance Rate
Check Your Credit Report for Errors
It’s usually best to get a copy of your credit report and scan it for any possible errors. Erroneous credit listings happen more often than you might think, and if there is a fraudulent claim on your report, you can call to have it expunged. The result can be a significant uptick in your credit score. Not everyone will be so fortunate, but it’s definitely worth trying.
Keep Your Credit Balances Low
Ideally, your credit balances should always be below 25 percent of your available credit. For example, if your credit limit is $10,000, you should keep the balance on your card to $2,500.
Be Careful About “No Cost Loans”
When you refinance, you generally have to pay closing costs out of your own pocket. You can find no-cost loans, which come without any upfront fees or closing costs—but of course, these loans aren’t really free. The closing costs have just been rolled into the loan principle, which in turn means you’re paying more in interest. Be careful about refinancing products that seem too good to be true.
Take a Shorter Loan Term—if You Can
A 15-year loan is almost always going to cost you less than a 30-year, so try to get a shorter loan term if you can. Your budget may not allow for it, as the monthly payments will be more, but the cost over the lifetime of the loan will be less—so it’s worth shooting for.
Lock in Your Refinance Rate at Just the Right Time
Your loan officer can help you get this right; be sure to consult with Loan Fleet about when is the best time to refinance.
Respond Quickly to Document Requests
The faster you provide information to your loan officer, the smoother your entire refinance process is going to be.
Finally, remember that not all refinance loans are created equal. It’s in your best interest to have your loan officer talk you through some different options.
Start the Refinancing Process Today
If you’re ready to start the refinancing process, and to save money on your next home loan, we invite you to contact the team at Loan Fleet today. We are experts in refinancing, and our commitment is to connect you with the best loan product to fit your needs. Reach out to us today!