Here at Patriot Home Mortgage, we’re committed to helping our St. George and Mesquite communities find the mortgage financing option that fits their needs. We provide home loan services for a variety of loans, including VA home loans, conventional loans, reverse mortgage, USDA loans, FHA loans, construction loans, and more.
No matter what type of home loan you have, many people get to the point where they ask themselves: “should I refinance my mortgage?” In today’s post, we’ll be sharing a few questions you can ask yourself to determine the answer to the big question of mortgage refinancing. Continue reading to learn more, and if you’d like to talk about mortgage refinancing with an expert from our mortgage company, contact us today!
What Is My Credit Score?
If your credit score has improved since you first applied for your mortgage, it may be a good idea to refinance your home loan. Your credit score plays a significant part in determining your mortgage rate. In general, the higher your credit score is, the lower your interest rate on the mortgage.
Will The Savings Be Worthwhile?
As with any financial choice, you’ll need to balance costs and benefits with a mortgage refinance. Every mortgage financing choice has a break-even point, where the cost associated with refinancing the loan is equal to the savings.
Take some time to figure out how long it will take for your refinance to pay for itself. If you don’t plan on staying in your current home past this point, it may not make sense for you to refinance your mortgage. When you are determining whether the savings will be worthwhile, be sure to factor fees into the equation. You will most likely need to pay a mortgage application fee, an origination fee, and an appraisal fee. If you are unsure about fees associated with mortgage refinancing, our mortgage experts are more than happy to talk with you. You can use our Refinance Break-Even Point tool to calculate whether refinancing will be worthwhile for you. Homeowners who have spent a long time repaying their mortgage should carefully consider whether mortgage refinancing is right for them, since it is more likely to be past the break-even point than someone who has spent less time repaying their home loan.
Will Mortgage Rates Rise Soon?
Mortgage rates, like all loan rates, fluctuate. These fluctuations are caused by a variety of factors, including market movements, inflation, and the global economy. Mortgage rates are out of your control, but you do have control over when or if you choose to refinance. The best time to refinance is when rates are low, so you can secure a better interest rate over the time that you are paying back your loan. If you have an adjusted-rate mortgage and rates are going to rise in the near future, it may be a good idea to refinance to a fixed-rate mortgage before repayment costs go up.
Has My Home Increased in Value?
If the value of your home has gone up, mortgage refinancing may be beneficial for you. This is especially true if you have other high-interest debts to pay off. You can opt for a cash-out refinance, and take that money to pay off your other loans. With a cash-out refinance, know that it’s important to make sure that you’re using that money responsibly, because you will eventually need to repay it as part of your mortgage.
Do I Want To Invest The Effort To Refinance?
Refinancing your mortgage can be a lot of work. Think back to when you first applied for your mortgage — you’ll need similar amounts of paperwork, and you’ll need to spend time understanding your options. Our mortgage company can help you every step of the way. If you’d like to get started, contact Patriot Home Mortgage in Mesquite or St. George.
Patriot Home Mortgage Mortgage Financing
We’re proud to help members of our St. George and Mesquite communities find the mortgage financing that fits their needs, including refinancing their current mortgage. We are passionate about helping people to understand. We’re here to help you find the right loan so that you can live better!
We provide services for conventional mortgages, VA loans, USDA loans, jumbo loans, reverse mortgages, and more. Follow our blog to learn more, and contact us today to get a free consultation and start the mortgage application process.