The clarity in thoughts is essential when you are making a financial decision.
In this article, we will answer some of the most revealing questions that will help you decide whether you should refinance your existing mortgage.
So, let’s dive right in!
Questions to Ask Before Refinancing Your Mortgage in 2020
Here are the questions you need to get answers to before you refinance your mortgage.
1. Why do you want to refinance your mortgage in 2020?
There might be three thought processes behind this decision –
– The interest rates are lower at present than your current mortgage interest rate.
– You are looking to lower the monthly payment on your mortgage.
– You are looking to lock in a lower rate of interest.
Make sure you have enough information about the current market and interest rates.
2. How many years have you stayed at the property, and what are your plans?
The payment towards interest from the first payment to the last payment ranges from 81% to 0.5%, respectively. For this reason, people tend to keep their homes to build wealth over time.
3. Do you qualify for refinancing your mortgage?
Refinancing a mortgage loan will depend on your credit score, Life-Time Value, and debt-to-income ratio.
4. What Types Of Closing Costs Can I Expect
There are two ways the expenses of refinancing can meet. One, you can pay the costs upfront. And two, you can add them up to your existing debt. Ask our trusted lenders for a break on closing costs.
5. What are the worst-case scenarios?
Refinancing has its downsides. It all comes down to what you are looking to do with the money. If you want to remodel the house, you will increase the value of the asset.
Take your time and understand the situation you are now and where you will be if you decide to refinance your home loan. We highly recommend you to consult our Loan Officers to get more insights into refinancing your mortgage.
Have questions? Feel free to put them down in the comments section. We’d love to hear from you!
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