Refinancing can seem enticing; however it is important to know when the most optimal time to refinance your mortgage is. If you’re ever wondering when the right time is, continue reading along with this month’s blog!
The only way you will be able to refinance your mortgage is if you are approved for the loan. If you aren’t approved, you will not be able to reap the benefits of refinancing. However, this is usually the last step in your process. When it comes to refinancing, you should always anticipate that you would be approved. If you know for a fact that you are going to qualify, this is the first step in deciding! Knowing that you will qualify and be approved will save you time in the long run.
When considering the option to refinance your mortgage, you should anticipate living in your home for at least five more years. If you’re already considering a move or wondering how soon you can leave, refinancing might not be the best option for you. However, if you’re interested in investing time in your home, refinancing is perfectly acceptable!
Last but certainly not least; you should only consider refinancing your mortgage if the current interest rates are lower than your existing rate. We suggest ensuring that the interest rate is at the very least 1% lower. Otherwise, there is no true reason for refinancing your mortgage as you are already reaping as many benefits as possible. If you are still interested in eventually refinancing, continue to check with the current rates. When you finally see a drop that is satisfying, then you can jump on board with starting to refinance your mortgage.
If you are interested in refinancing your existing mortgage, be sure to check that now is the right time. If you are confident and ready to get stared, be sure to check out American Mortgage Resource, Inc. to learn more!