Should I refinance?
|The most common reason for refinancing is to save money. Saving money through refinancing can be achieved in two ways:
Other reasons why a homeowner would refinance would be to strategically manage their mortgage to reduce short term expenses or long term interest:
How do you know?
The answer to the question “Should I refinance?” is a complex one, since every situation is different and no two homeowners are in the exact same situation. Even the conventional wisdom of refinancing only when you can save 2% on your mortgage is not really true. If you are refinancing to save money on your monthly payments, the following calculation is more appropriate than the rule of 2%:
Sometimes, you do not have a choice––you are forced to refinance. This happens when you have a loan with a balloon provision, but with no conversion option. In this case it is best to refinance a few months before the balloon comes due.
Whatever you choose to do, consulting with a seasoned mortgage professional can often save you time and money. Make a few phone calls, check out a few web sites, crunch on a few calculators and spend some time to understand the options available to you.
The refinance process can get pretty overwhelming.
That’s where we come in.
Approved Funding helps make it easy to get a new mortgage. We’ll walk you through the process from start to finish. And we’ll stand by you every step of the way to make sure your experience is a positive one.
Since 1987 Approved Funding has helped thousands of home buyers finance Billions (with a “B”) in mortgage loans. Find out how we can make this mortgage experience the best one yet!