Three Signs You Might Need To Refinance Your Home
More often than not, being a homeowner entails having a monthly mortgage payment. But after so many years of paying a home loan, it’s not uncommon for people to start exploring refinancing options. Read about these three signs you might need to refinance your home so that you can begin the process at the most opportune time.
Your Interest Rate Is Higher Than Current Mortgage Rates
Recently, interest rates on home loans and mortgages are at record lows. So, if you closed on your house more than seven years ago, it’s likely that the interest rate on your mortgage payment is higher than it should be. And because home loans are typically pretty large, the interest rates attached are also quite expensive. So, it’s worth looking into refinancing your home if you find that your interest rate is far higher than those of the current market. Refinancing your home can help you land a lower interest rate that’s more appropriate.
You Need a Lower Monthly Payment
If you’re starting to feel like your monthly payment is overwhelming, it’s wise to start the process of refinancing your mortgage. Not only will doing this help lower your interest rates, but it can also lengthen your loan repayment period, which will lower your mortgage significantly. For instance, perhaps you owe the bank $200,000 over 15 years, but you decide to refinance and sign a 30-year mortgage for the same loan amount. Of course, this process leads to a much lower rate overall. So, if you notice that your monthly payment is looking a little too high, it’s probably a good time to refinance.
Your Credit Score Has Improved
Another indication that it’s time to refinance your home is if your credit score has improved significantly since you originally applied for your loan. Because credit plays such an essential role in your eligibility to receive a mortgage, getting approval with a lower credit score often entails a higher interest rate and monthly payment. But if it’s been a few years, and you’ve continually put in an effort to improve your credit, refinancing your home can help you decrease your monthly payment and interest rates. In this case, it’s worth a shot to refinance so that you can get payment rates that are more aligned with your current credit.
So, whether you need to change your payment plan or you’re just looking for lower interest rates, understanding these three signs you might need to refinance your home can help you decide whether it’s time to start the process. Of course, if you’re just starting out in your mortgage journey, you can reach out to Streamline Mortgage’s private lenders in Nevada to ensure your loans and future home refinancing go smoothly.