You’ve probably heard the news that interest rates are at a historic low, so now is a great time to consider refinancing your home mortgage. It’s true that for several months interest rates have dropped, but they won’t stay low forever.
Even with the low rates, is now the right time for you to act? Origin Bank is here with some tips to help you determine if refinancing your home mortgage is right for you.
- Establish your goals - Deciding how a refinance could help you in both the short- and long-term is an important step in the process. Will refinancing allow you to shorten the term of your loan? Will it increase your long-term net worth? Improve your short-term cash flow? Take a look at what you stand to gain to determine if refinancing will positively impact your bottom line now and in the long run.
- Check your current interest rate and compare - Do you know what your interest rate is on your current home mortgage loan? If not, you can find your rate on your monthly mortgage statements or on your original mortgage loan documents. Compare your current rate to what market rates are being offered right now - if rates are lower than what you’re paying now, you could be in for significant savings. Check out Origin Bank’s free financial calculators to help you determine how much you could save each month.
- Credit Scores - If your credit score is not at its best right now, you may need to take steps to improve it before pursuing a refinance loan. Having a good credit score will help you qualify for the best rates currently offered, increasing your chance of significant savings on your monthly mortgage payments. Origin Bank has the information you need so you can learn about credit scores and understand how they can impact your financial goals.
- Closing Costs - Just as when you purchased your home, you will have to pay closing costs when you refinance. Attorney’s fees, home appraisal and inspection fees, title searches and application fees are just a few of the costs you can expect. Understanding what the fees are, including how much you’ll need to spend out-of-pocket, will help you determine if you’re ready to pursue a refinance.
- Choose the right lender - Refinancing with a quality, reputable lender is crucial. It ensures you get the best rate for you, accurate guidance and support throughout the process, and that there are no surprises along the way.
At Origin Bank, we understand that deciding whether or not to refinance your home loan can be complicated. Our Origin Bank Home Lending Team is here to help with the information, professional expertise and friendly advice you need. To learn more about Origin Bank including our personal loan offerings, please visit our website.