Now that you’ve bought a home and mortgage rates have fallen to record lows, now is the time to refinance your mortgage. At today’s rates, more than ever, the number of refinancing applications have skyrocketed!
Before calling around and spending hours on different websites investigating the best mortgage rates, you need to know what’s out there. You can only understand a true deal when you know all the possibilities. What’s the end goal of refinancing?
The end-goal of refinancing your home is to lower your monthly payments and still minimize your overall cost of debt. It might sound confusing, but you can only find the best loan for your when you know what your needs are. Of course, everyone needs to save money, but what monthly payment can you afford? How important is it to pay off in ten years? Thirty years? What other stable sources of income do you have.
One of the best ways to find your answers is with a refinance calculator. After you plug in all the information, the calculator will display your savings, breakeven timeframe and much more. Give it a try!
Now that you know what kind of loan you need, it’s time to see what is actually out there – the actual type of loan that you can receive. This part can be very tiresome, but there are some brilliant resources out there to help you out. One of them is called Nerdwallet – their refinancing comparison page is amazing. You can also check all the bank websites like Wells Fargo and Chase. Usually the comparison sites are best so you don’t need to visit every bank’s website. Lastly, Quicken Loans is a great company to work with since they make the process so easy.