5 Steps for The Best Mortgage Refinancing Rates

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5 Steps to Get the Best Mortgage Refinancing Rates

When you’re a homeowner and you’re considering refinancing your mortgage, you would probably think of looking for the best mortgage refinancing rates out there. But do you exactly know where to look? Here are the 5 steps to get you started.

Determine your goal

You want to refinance for the right reason. This doesn’t take a lot of work but your goal should be to shorten or at the very least maintain your current loan while lowering your interest rate. Your goal in refinancing is really at that rate so you can lower your payment and that you can pay maybe the same amount, but you’re paying more towards your principal.

Know your credit score

These days, knowing your credit score is easy if you have a Equifax account. Also, a lot of credit card companies will let you know your credit score each month. It’s good to know what your credit score is and also where your credit score falls under–in terms of value.

Know your home value.

Same way as knowing your credit score, you need to know your home’s value. You don’t have to make this too complicated but look at what you bought it for. You can go to MLS website to find what neighbor’s homes are sold for.

This step is very important because when banks are looking at refinancing your house, you will have an idea of what they will use in determining what your house is worth. Things can change when you’re shopping for your mortgage rate so be sure to do all these steps within a couple of weeks because your credit score can dip a bit. It could get better but it could dip a bit. So, as you go into refinancing, you should be focused and try to just knock it out as quickly as possible.

Know your ALL IN cost

There are costs that can go along when refinancing your mortgage such as discharge penalties, the cost of an appraisal, the bank might want to do a re-appraisal of your house, broker fees, legal fees, title research, etc.

There’s all those little things that always go into refinancing. Before you just jump in blindly and thinking you know what you’re working with, make sure you tell your lender that you need to know your ALL IN costs so you know what type of money to expect out of pocket and you know you’re being upfront as well. This way, you know you’re getting a fair deal.

Lock in your best mortgage refinancing rates

Don’t go variable and instead, lock in your rate. If the rates are good right now, which is something like 2.4, lock in that rate when you get it. The most important thing to do before locking in your mortgage refinancing rate is to find the right lender. You might go for our advice, because we do not want our clients to pay tens of thousands in penalties.

With interest rates approaching historic lows, more and more homeowners are almost racing against each other to catch the best mortgage refinancing rates. And, like any other race, if you don’t know where to look and taking the right steps, you have zero chance of winning. Contact us today to unlock the best mortgage refinancing rates.

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