1. Have Your Loan Terms Changed?
A fixed rate is commonly set at 15 or 30 years. The interest rate that you secure in the beginning will remain the same throughout the duration of the loan term. This means that you will have the same payments every month, and you can budget and plan more easily. By comparing rates from lenders, you can choose the lowest rate and save even more money on your loan.
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2. Do You Have a Higher Paying Job?
The job and career that you had when you first purchased the home may be vastly different than the one you have now. If you’re making more money, you may have the ability to put more toward your mortgage and pay off the home in a shorter amount of time. For example, you may currently have 30-year fixed rate mortgage . By refinancing into a 15-year fixed rate mortgage, you can get lower interest rates and pay off your home in half the time. Evaluate your job stability, current salary, and any anticipated salary increases to decide if refinancing works for you. With increased volatility in the job and housing market, refinancing your mortgage sooner rather than later could mean tapping into major savings.
3. Has Your Family Situation Changed?
Major family changes can have a dramatic impact on your financial situation. If you’re in the process of getting divorced or your partner has passed away, your once-affordable mortgage payments may be difficult to make each month. By refinancing and obtaining a new agreement, you have the ability to lower your monthly payments and make them fit within your budget. Transitioning to a single budget can be made a lot easier by lessening the burden of your monthly mortgage.
4. Do You Have More Cash on Hand?
If you’ve recently come into a large sum of money, you may want to use that cash to help pay off a home mortgage. By refinancing, you can set up a term that allows you to get the home paid off in a short period. Along with the 15-year fixed rate loan, you can choose an even shorter term known as a balloon payment. A balloon payment features several years of fixed payments until a final end date is set. The end date includes a large payment amount for the remaining principal owed on the house. With this refinancing option, your home can be fully paid off in five to seven years.
5. Do You Have Enough Equity in Your Home?
Your equity is the market value of your home minus the amount you still owe, and it naturally increases with each payment that you make. The equity can also increase with the appraised value of your home. There are several factors that can impact the value of your home. Other home sales in the area, home improvements, and changes in the housing market are just a few of the factors that can increase your equity. If your equity has recently increased, it may be a good time to apply for a cash-out refinance loan. This type of loan will pay you extra based on the equity you have available.
Bonus Question: How Do I Get Started?
When it comes to refinancing your mortgage - your potential savings really depends on the lender you choose. Lenders like Quicken Loans, Amerisave and Better are leaders when it comes to refinancing your mortgage online - compare today and start saving!
It's easy to see why Quicken Loans is American's largest online mortgage lender. Quicken Loans offers a wide range of loan options, delivers award-winning customer support and they promise to use cutting-edge technology to guide borrowers to the best loan product and complete the loan approval process quickly and easily.
Start saving with Quicken Loans!
AmeriSave is a full-service mortgage lender operating in 49 states and DC. Established in Atlanta in 2002, it has funded 220,000+ homes for a total value of more than $55 billion. AmeriSave is known for offering a quick and straightforward way for potential homeowners and prospective buyers to uncover the loans they need and access funds efficiently, as well as easy online applications with the option of contacting customer support any time you need assistance.
Take advantage of falling interest rates, explore mortgage refinancing with AmeriSave today!
If you're looking for a completely digital mortgage experience, Better could be the lender for you. Thanks to its mostly digital platform, Better is able to bring major savings to their customers. Just input your basic info, and receive relevant loans with the best possible rates. No origination fees, no lenders fees, and no commissions. Log in to your Better account anywhere, anytime to see where you are in the refinancing process.
Take your mortgage into the digital age with Better!