Is It Time to Refinance Your Home? | Trusted American Mortgage

Refinancing your mortgage can certainly save you money. However, before you pull the plug on refinancing your home, our team at Trusted American Mortgage wants to make sure that you time it just right to benefit most.

Let’s take a look at some things to consider when it comes to determining whether you should refinance your mortgage:

Is It a Better Interest Rate?

You want to make sure that when you refinance your mortgage that you are able to obtain a better interest rate. Now only can the interest rate help with lowering your monthly payment, it can also help you save money throughout the lifetime of your home loan.

Therefore, you want to make sure you are improving your interest rate in order to improve your overall finances in the end!

In order to know if your interest rate is going to be better, you also need to be aware of your current credit score. If your credit score is higher than what it was when you first bought your home, then there is a good chance that you’ll receive a better interest rate offer this time around.

However, if your credit score is lower than when you first became a homeowner, then you might want to rethink refinancing.

Do You Have Upcoming Expenses?

This is where you consider whether your financial needs merit refinancing to free up more money.

Are you in need of cash to help cover your child’s college tuition or are you looking to make big improvements to your home?

Then, refinancing your mortgage might be the best (and cheapest) way to free up the money you need for a big expense.

Will You Ultimately Save Money?

The ultimate goal of refinancing in most cases is to save money in the long run. So carefully consider the details of any mortgage refinance offer to determine whether it will help you do that.

You’ll want to examine not just the interest rate and new monthly payment, but also the total amount due—and whether that represents an actual savings over your current mortgage. A mortgage loan officer will be able to step you through all the details so you can make an informed decision.

Are you looking to refinance your home? Give our team at Trusted American Mortgage a call today to learn how to get started!