A lot goes on when dealing with your home’s mortgage. Besides getting a mortgagee rate that can help you secure your new home, there are ways to edit your current rate or get refinancing. Refinancing is a great way to help you save money or help you get your funds in check when you need some major home renovation.
However, even with its countless benefits, many people are still unsure about refinancing and don’t know when they actually need it. For this reason, when you need assistance with your finances and home mortgage, it’s best to find a mortgage broker who can guide you through the whole process. This way, you’ll get to find the best deals and ensure that you’re following the right steps for a smooth, hassle-free refinancing process.
If you’re curious to know when you can apply for refinancing, read on. Our team has compiled a list of signs you should watch out for that tells you it’s time to shake up your mortgage terms and apply for refinancing. Let’s get to it!
Sign #1: Mortgage Rates Have Lowered
Because of various factors, such as the U.S. Federal Reserve, inflation, and the economy, mortgage rates are sure to fluctuate. With that being said, it’s best to keep an eye on these changes and see if mortgage rates have gone down from when you took out your first mortgage.
When you refinance to a lower interest rate, you get to save more on interest charges and monthly payments, which could ultimately give you additional cashback. With that in mind, ensure you find a mortgage broker who can keep you up-to-date with the changes.
Sign #2: Your Home Is Appreciating in Value
When you’ve done major home renovations or the properties in your neighborhood have increased in value, it’s time for you to refinance. This is best especially when you have a high-interest debt you’d like to condense.
When your home’s value increases, your home equity will most likely rise as well, giving you more borrowing power and allowing you to save loads on cash.
Sign #3: Your Credit Score and Income Has Improved Significantly
We all know that credit score and income play a huge part when it comes to your mortgage interest rate. With that being said, when you have an increase in your income and improve your credit score, it’s best to get refinancing to help reduce your mortgage rate.
Sign #4: You Currently Have an Adjustable-Rate Mortgage and Interest Rates Are Increasing
When you have an adjustable-rate mortgage and mortgage interest rates are going up, it’s a recipe for disaster. With that being said, it’s best to take hold of the situation and apply for refinancing and transfer to a fixed-rate mortgage.
The Bottom Line: What Benefits Do I Get from Refinancing My Mortgage?
Two of the biggest benefits you get from refinancing your mortgage are getting to secure a lower interest rate and changing your loan terms, allowing you to save more money and improve your financial health. For this reason, it’s best to find a mortgage broker who can help you stay on track with your mortgage term and finances.
Why Should You Work with Us?
If you’re looking for the best mortgage broker in South California, you’ve come to the right place.
Benjamin Group Lending is a mortgage brokerage firm and real estate agency that offers exceptional services to prospective and existing homeowners in the Greater L.A. area. We provide extensive mortgage expertise, assist real estate appraisals, and more.
Speak to us today!
