If you have been considering refinancing, you probably know that one of the most important things to do is to make sure that you are getting the timing right. This can make the difference between whether or not a refinance is worth it.
To help you think through your scenario, we have put together this list of indications that the time might be right for moving forward with your plans to refinance.
Things To Consider If You Plan To Refinance
- Your qualifications are competitive. When you apply to refinance, we will be looking at the same factors we assessed when you first took out your home loan. These include:
– Your credit score
– Your debt-to-income (DTI)) ratio
– Your income.
If your qualifications are in great shape, they should help you apply successfully for excellent rates and terms when you refinance.
If any of these measures of financial health are not as high as they could be, you might be better off working on improving them a little bit more before you apply. - You are paying a higher rate than what is typical right now. Check your current mortgage rate against the going market rates. Are you paying significantly more than other homeowners right now? If so, think about how much money you could potentially save over the coming years if your interest rate were in line with current rates. With the right qualifications, you could soon be paying much less.
- The benefits of refinancing will outweigh the costs. Once you know how much you could feasibly save on interest with a refinance, you can compare that amount against the likely cost for the refinance. There could be other financial benefits that go with refinancing as well. For example, by adjusting the term of your loan, you could pay a higher or lower amount each month. There are also scenarios where refinancing can help you quit paying PMI, saving even more money. After you do the math, if you calculate that the advantages of refinancing will more than make up for the costs, it is logical to proceed.
- Refinancing will reduce your stress. The financial advantages of refinancing may not be the only reasons you are thinking about doing it. You might also be wanting to refinance because it could simplify your life in some way, reducing your overall stress. If you know you will feel better emotionally after refinancing, and you calculate that it makes financial sense, that is another sign that it is time to move forward.
We Can Help You Figure Out if a Refinance is Right for You
Still not sure if this is the right time for you to refinance? MMS Mortgage Services can help you weigh the pros and cons during your consultation and calculate how much you could save over the lifetime of your loan. To get started now, please call us today at (248) 788-0800 to schedule your consult. We can help you refinance in Michigan or 15 others states.
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