Save time and feel secure about your refinance by being prepared
Homeowners all over the country have been taking advantage of the super low mortgage interest rates and are refinancing their homes. Maybe you have been thinking of refinancing your home too. Saving hundreds of dollars a month and knocking off some precious years from your loan does sound pretty good. Here are a few things to know before you get started.
Know your current interest rate, monthly payments and loan term.
Take a look at your information and determine if you want or need to refinance. Many people have been paying on their loans for so long they forgot what their interest rate is or how many years they have left on their mortgage. Right now you can find interest rates below 3%, which could save you money monthly and shave off years from your loan.
Shop around to find the right fit for you.
It’s a borrowers’ market right now, so take advantage of it! You have quite a few options, so don’t just go with the first one you look at or talk to. It is wise to get quotes from at least three different lenders to find the one that is the best fit for you. You want to make sure you are the one benefiting and saving money.
Take your time and ask questions.
Refinancing your home is an important decision; don’t let anyone rush you into a contract too quickly. Take the time you need to shop around and gather all the information you require. Financial documents can be overwhelming at times, so don’t be afraid to ask questions. Each question could save you money. It is important to understand all the processing fees and closing costs too. These little things can add up and can take away from your overall savings.
Inform your insurance agency at least 2 weeks before closing.
You will need proof of homeowners insurance when you begin to refinance. Having your homeowners’ declaration page on hand at the beginning of your process can be very helpful. Once you have chosen a lender they will request that your insurance company place them on your policy as the lienholder. They should contact your insurance company on your behalf and include a signed authorization form. Having your declaration page on hand and having your lender make contact with your insurance company BEFORE closing will save you in the end. Many people forget this step and remember a day before closing and can experience delays while they wait for paperwork to process.
Feel confident in your decision to save money.
Once you have made your decision you should feel secure in your refinance and with the lender you chose. Hopefully, your decision will save you time and money, and we all want more of those things.