With advancements in technology and changes to our economy, mortgage interest rates are at an all-time low. That’s why refinancing is a decent option for people looking to save time and money today. Although the added savings, locked-in rates, and lower payments have enticed many homeowners to pursue this option, is it the right choice for you?
If you want to improve your financial situation, refinancing might undoubtedly be the right option for you. Let’s take a look at some great tips to help you save time and money on your mortgage refinance.
4 Tips to Save Time and Money with a Mortgage Refinance
Let’s jump in to learn more about how you can save time and money when you refinance your mortgage!
1. Consider the Term
Before you start the process, research the terms of your new mortgage. Consider your goals of refinancing. Do you want to save on your monthly payment? Or do you wish to pay off your mortgage faster? The terms of your new loan rely heavily on the overall goals of your refinancing.
Keep in mind that the shorter the term, the higher the payment. However, you will pay off the loan faster with this type of option. It allows you to save on the total interest costs with fixed-rate and shorter terms. If you are looking for a reduced monthly payment, choose a longer-term option.
2. Compare Apples to Apples
Two mortgage offers are never created equal. The interest rate usually varies among lenders, as do the closing costs and appraisals. Take your time to shop around. This will help you find the best option for your financial circumstances and long-term goals. Before you make a deal, make sure you’re comparing apples to apples.
You shouldn’t only look at terms and rates. Your offers will include an appraisal to determine the value of your home. You’ll also need to consider home equity and mortgage insurance. All of these add to the overall monthly payment cost. Take a good look at your offers to make sure you are comparing the same terms and fees. This is the best way to save time and money in the long run.
3. Discuss Title Insurance
Before you sign an agreement, discuss your title insurance. In most cases, the cost of insurance is added to your loan. This is a beneficial option for homeowners who lack the extra funds to pay the cost during refinancing. Discuss your options with your financial advisor.
4. Consider a Fixed-Rate Mortgage
Do you have an adjustable mortgage rate? In most cases, fixed-rate mortgages are a better option. If you can lock in a great rate, this will keep it consistent throughout the term of your loan. This will help you save money in the long run as rates fluctuate over the years.
Contact All American Financial Services for Assistance
If you’re considering refinancing your mortgage, All American Financial Services is here to help. Contact us today to discuss your Lancaster refinance options with a certified financial advisor.