You could save hundreds of dollars per month by refinancing—here’s how to do it
Mortgage rates are at the lowest they’ve been since November 2016, which means that for millions of homeowners, refinancing could lead to big savings.
Refinancing your mortgage has many obvious benefits. It can help you lower your monthly mortgage payments, pay off your home loan faster and save money.
But it can also turn out to be an expensive mistake if you refinance at the wrong time or don’t choose the correct lender.
If you’re considering refinancing your home, it’s important to know what you’re signing up for - and to get a clear picture of the lending landscape.
“I always recommend you shop around like you would if you were shopping for a new car or dishwasher,” Chris Collins, Financial planner. “Go back and forth with lenders to get the best deal. You don’t have to say yes to the first offer.”
This is why experts recommend obtaining at least 3 quotes before making a decision.
LendingTree is a good place to begin the process. As one of the biggest names in the world of online refinance lending, LendingTree provides borrowers access to a wide variety of lenders with just a single application form.
How do i know if refinancing is right for me?
If the interest rate on your new mortgage is at least 0.75% lower than your current rate, refinancing is probably worth your time.
According to Black Knight’s latest Mortgage Monitor report, 8.2 million homeowners are now likely to qualify for a refinance that reduces their interest rate by at least 0.75%.
And you don’t have to be a long-time homeowner to consider refinancing.
More than 35% of all borrowers who took out their first mortgage in 2018 could now save at least 0.75% by refinancing.
Quicken Loans is another leader in the world of mortgages.
They use cutting-edge technology to guide borrowers to the best loan product. They also have a completely online application process where you can track the status of your mortgage application and manage your mortgage online once it’s completed.
Not sure if refinancing your mortgage is the best financial move?
Refinancing your mortgage can improve your financial situation and save you money in the long term, but it’s important you are refinancing at the right time, for the right reasons, and at the right rate.
Figure out your refinance goals first. Do you want to lower your monthly payment, get a lower interest rate, shorten your term or do a cash-out refinance? Once you decide, you can then use a refinance calculator to calculate your payments and the overall cost/savings to get a better understanding of whether or not it’s worth the effort.