If your neighbors are paying a lower interest rate than you are on your home loan, you might wonder whether you qualify for more competitive rates and terms.
In many cases, the answer may be “yes.”
By refinancing your mortgage in Indiana, Colorado, Kentucky, Tennessee, or Florida, you might be to reduce your interest rate and enjoy other outstanding benefits.
The exact benefits of refinancing depend on your specific scenario. But here are some possible advantages:
While the advantages of refinancing can greatly enhance the flexibility, convenience, and affordability of your mortgage, there is a cost to refinancing a home loan.
The key to making a refinance work for you is to time it well. How do you know if refinancing at this time will pay off? Here are some scenarios where we might recommend a refinance:
When your qualifications are more competitive. With a higher credit score or lower DTI ratio than you had when you applied for your original mortgage, you might now qualify for more competitive rates and terms.
When interest rates have dropped. If interest rates have decreased relative to what you are paying right now, it might be time to try refinancing to lock in today’s more competitive rates.
When your income has gone down. Sometimes, homeowners may turn to refinancing if their incomes have dropped. By refinancing to a longer loan term, it is possible to decrease the monthly mortgage payment for a more affordable home loan.
When you own more equity. If you pay for mortgage insurance each month, it is worth checking to see whether you now own enough equity in your home to qualify for a mortgage without insurance.
When you are consolidating. Borrowers with high interest debts can benefit from consolidating them into a home loan with a lower interest rate.
When your plans have changed. If you plan to live in your home for longer or shorter than you originally expected, changing to a fixed or adjustable interest rate might help you save money. Some borrowers also switch to a fixed rate for peace of mind.
Are you ready to own your own home? To apply now, please contact American Mortgage Solutions.
American Mortgage Solutions is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.