A Few Quick Tips on Refinancing Your Home
I’m joined once again today by local lender Terry Schenck to shed some light on a hot topic: refinancing.
In light of our current low rates, refinancing has become an incredibly popular option for homeowners in our market. Refinancing is also a great way to shorten the term of your mortgage at, potentially, no cost. Others, still, choose to refinance in order to take cash out to fund home remodeling projects, pad out a savings account, consolidate their debt, or to invest in additional properties.
Whatever the case may be, refinancing poses a lot of benefits for homeowners—especially right now. However, many people aren’t sure how to get started with such a process.
According to Terry, refinancing a home is similar in many ways to purchasing one. The first step in both, for example, is to have a lender check your credit and get you qualified. Those looking to refinance will also usually need to order an appraisal; though there are special programs that allow homeowners to forgo this step.
Finally, homeowners undergoing a refinance will need to pay certain closing fees, but these won’t generally be as high as those you’d pay during a purchase. You can opt to take on a higher interest rate to avoid these fees, but this is something you should discuss more thoroughly with your lender, as this option may not be the optimal choice for everyone.
Hopefully this discussion has given you a better understanding of refinancing in general. If you have any other questions or would like more information, don’t hesitate to give me or Terry a call, or to send either of us an email. We look forward to hearing from you soon.