The housing market is continuously changing and homeowners should stay on their toes as they look at interest rates. If you are a homeowner, don’t miss out on the opportunities to lower interest rates, monthly payments, and even shorten the length of your loan! If you are interested in refinancing, here are some simple “to-knows” about the process:

Home equity

One of the first aspects of refinancing will be the determining the value of your home. The last thing a homeowner wants is to be “underwater” with their lender as they owe more than what the home is worth. Having low equity makes it very difficult to refinance with conventional lender.

Costs

Refinancing can cost anywhere between 3%-5% of the loan amount. If you have enough equity, however, you can roll those costs into the new loan, increasing the principle. Some lenders offer “no cost” route.

Interest Rate

The market is always changing but if your interest rate is higher than the market rate, it is time to look into the process of refinancing. It will save you money over time.

Time

If you are able to refinance, you can cut some significant time off of the life of your loan. Now, this may mean paying a higher monthly but having that loan paid off earlier could take some weight off your shoulders!

Rate Type

Refinancing is a great time to consider the change from adjustable rate to fixed or vice versa. If the market is experiencing inconsistent change or climbing, an adjustable could hurt.

Everyone’s financial situation is unique so if you want to learn more about the possibilities you have with refinancing contact the HousingBuzz team today!