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Should you refinance? 9 questions to ask before you do
April 9, 2015
Monitoring current mortgage rates and knowing when to take advantage of opportunities in the market can help you save on the cost of your home loan in a big way. This week we are pleased to welcome a mortgage and refinancing expert as our guest blogger to share with you some things to consider if you would like to take advantage of today's low rates.
Jim Alderman is a mortgage consultant with North American Savings Bank, the preferred lender of Summit Custom Homes. Jim has been with NASB for 15 years and leads an expert team of loan officers based in Lee’s Summit, MO. The Alderman Team provides a customized home lending experience designed to meet each individual’s needs.
Mortgage rates are constantly fluctuating. Right now, mortgage rates are near historical lows. Depending on your current interest rate and other terms of your mortgage, you may have the opportunity to save significant money and improve your monthly cash flow by refinancing. You may also have the opportunity to consolidate credit card debt and other costly financing as well. If you have a mortgage or any debt outstanding, it always makes sense to see if there are opportunities to save money. The following are important questions to ask yourself when considering refinancing:Are current mortgage rates lower than on my existing mortgage?
How much do I owe on my mortgage?
What will it cost me to refinance? Typical costs are title insurance, credit reports, appraisals, loan processing fees.
How long will I keep the mortgage? Note that the answer may not be the same as how long you intend to live in the house.
Do I need to borrow additional funds for home improvements, tuition, a second home, an investment, etc.?
Do I want to shorten (or lengthen) the term of my current mortgage?
Do I have a large balance of outstanding credit card debt?
Do I have good credit?
Has my financial condition changed?
Please feel free to call me anytime for a mortgage checkup and to discuss the options available to you.
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