Believe it or not, your home loan is much like your car. As months turn into years, you need to be continually checking that it’s running at its best performance level. Sadly, your home does not have a special feature to alert you to when “mortgage maintenance” is due. Thankfully, we have put together a list of signs that it may be time to refinance your home! If any of these points apply to you, give America’s Moneyline a call today!
Sitting on your equity
If you are sitting on equity then it’s time to consider a cash-out refinance. With the equity cash in hand, think how you could possibly consolidate your debt, make home improvements, use it for college tuition or invest it earning interest to use for a rainy day.
You want to lower your monthly payment
If you have been crunching the numbers in your budget and coming up short, by refinancing you could potentially lower your interest rate saving you cash.
Your current rate is higher than refinance rates
If you have been watching how interest rates are changing, it may be time to lock in your new, lower rate. If you don’t plan on moving anytime soon, then you could make a smart ‘move’ locking in a lower, fixed rate mortgage by refinancing.
Your credit score has gone up
If your credit score has grown since you closed on your home loan, it may be time to reach out to your Loan Officer to evaluate the possibility of obtaining a better rate.
Your income has increased
If your income has greatly grown then you should consider refinancing to a shorter term mortgage. In the long run, a refinance will help you save on your interest payments every month.
Your adjustable rate mortgage (ARM) is about to change
If your ARM is about to reset, now would be a great time to get a lower rate by refinancing to a fixed rate mortgage. With your new fixed rate mortgage, you wouldn’t have to worry about rates rising since they are now at an all time low.
You want to stop paying private mortgage insurance (PMI)
If you have accumulated equity in your home, you may be able to refinance and drop the PMI.
If any of these points apply to you, give America’s Moneyline a call today! We would be more than happy to walk you through the next steps that may be more appropriate for you.