Blog Layout

When Is The Right Time To Refinance Your Home?

October 6, 2021
Refinancing your home could be the answer to reaching your big goals. When you refinance your home, you could potentially be securing a lower monthly payment, shorter payment term, or even cashing out for other large financial goals. But when is the right time to refinance and how do you know if it’s the best decision for your specific situation? 

If you’ve been considering refinancing your home, we have 5 things you should know before starting the process. 

Define Why You're Refinancing Your Home

There are many different reasons you may want to refinance your home. From looking for a lower interest rate and monthly mortgage payment to securing a shorter loan payoff term, to cashing in on your home’s equity for other large financial goals. Whatever your reason for refinancing is, you want to make sure you know exactly why you want to start the process before you get started

Timing Is Everything

Remember the process you went through when buying your home? Well, the process of refinancing isn’t too much different. While you obviously do not have to go through the process of finding a new home (Whew!), you should expect to go through a similar documentation and paperwork process with your lender.


First things first, you’ll have to qualify for your new loan agreement. This means preparing things like income documents, bank statements, credit history, taxes, etc. Your lender will walk through the entire process with you to ensure you are qualified for the best possible loan program for your specific situation. 


During the process, you’ll also undergo a home appraisal to determine the current value of your home. You may not need to invest in any large renovation but making sure your home is at its best through minor repairs, cleaning, and a boost in curb appeal can make all the difference.


The Benefits of Refinancing

We have briefly mentioned some of the things refinancing your home could help you with but let’s dive a little deeper. Once you’ve decided on your reason for refinancing, you will be able to choose the best path forward to reach that goal and reap the benefits you’re seeking. 


Lowering your monthly payment by refinancing to a lower rate could mean an increase in your monthly savings on your home. If you’re aiming for a shorter repayment term, you will find yourself paying less interest over time on your mortgage loan. 


Another benefit of refinancing could be the ability to cash out on your home equity. As you pay off your mortgage, you build equity in your home. That equity can be used for other financial goals such as debt repayment, college tuition, other large financial purchases, or even reinvesting in your home with home renovations. This is an option you should discuss in detail with your lender to determine exactly how much equity you have in your home and what the best option for you and your specific situation may be.


Timing Is Everything

If your goal is to lock in a lower interest rate, you’ll want to make sure you’re acting on it when it makes the most sense. Today’s mortgage interest rates have remained steadily low, presenting an incredible opportunity to homeowners. However, these conditions aren’t set in stone. 


Connect with your lender to determine what makes the most sense for your specific situation. They will be able to evaluate your entire financial situation, provide insight into the market, and create a plan that works to bring you to your goals.


Understand All Your Options

When refinancing your home, you have a lot of decisions to make. It’s important to understand that you are not confined to your current situation. Refinancing opens the door to new loan programs and terms, several different financial benefits, and even the option to try a new lender. 


When you refinance your home, you’re essentially paying off your current mortgage and starting on a new page. This means you can shop around for the best lender for you, ensuring you find the best terms and conditions for your specific situation. 


Ultimately, refinancing can be a huge financially beneficial move for homeowners today. If anything, be sure to do your research and talk to a trusted professional so you understand all your options and can make the best possible decision for you and your family. 


If you’re ready to start the refinancing process or have more questions about what’s involved, head to our Refinance Product Page Here or contact one of our expert loan officers today!


Share This Article

Q1 Recap

By Mikaylah Collins • April 12, 2023
We've begun to see signs that the Spring Market is here and could be robust! Here is what we know: According to NAR, home sales were up 14% in February over the previous month which marked the biggest monthly increase since July 2020. While March results are not yet published, the mortgage industry saw an increase in purchase applications for the 3rd straight month; a great sign for the housing market. Driving much of this activity is the stabilization of rates in January & February and lower interest rates this past month. We’re starting to see signs of a slowing economy and the markets are now pricing this in. This week we saw the 10-yr Treasury drop under 3.4%, a level it has not reached for quite some time and the lowest it’s been since September 9, 2022. This is great news for consumers as decreasing rates mean more home affordability. Over the past year, most markets have seen home prices stabilize if not even decline, albeit by a very small amount. This stabilization was still a relief for homebuyers as it helped to offset higher interest rates. As rates continue to decrease, we would expect home prices to again increase due to demand increases. In addition to increased demand, there is still a shortage of homes for sale nationwide and that will continue to worsen as more and more homebuyers enter the market.  So what does it all mean? Now is a GREAT time to buy a home! Rates and home prices are stable, there is not as much competition as there will be when rates do decrease, and buying a home is still extremely affordable for most. Once rates fall, we will likely see home prices rise and the competition for the shortage of homes will increase alongside it making the window of a buyer-dominated market very small.

Q1 2023 Market Outlook

By Sarah Rubin • February 10, 2023
We are well into Q1 and feel confident saying that the market appears to be stabilizing. Before we start looking forward, let’s quickly look back at the end of 2022.

Finding The Right Listing Agent For You

By Sarah Rubin • December 15, 2022
Buying a home is a huge investment and one we talk about often - BUT the flipside is that you have an opportunity to cash in on that investment when you’re ready to sell your home! While you do have the chance to cash-in, a lot more work goes into selling a home than you might think! If you are considering selling your home, working with a listing agent will help you market your home, negotiate with potential buyers, work through paperwork, and ultimately close on your home! So what is a listing agent? In its most basic terms, a listing agent is a real estate professional who represents the seller in a real estate transaction. The listing agent lists the home for sale and works on behalf of the seller to sell the home at the best price and terms for their client. Listing your home is a BIG deal and it is not a place to try and DIY. But why can’t you just grab a sign at Home Depot and try and sell yourself? Well, there are lots of reasons some of which include: Professional consultation: A listing agent will walk you through each step and tell you what to expect along the way! They should understand the specific community you’re in and the current market environment and will help you determine a competitive but realistic asking price for your home. Marketing and selling your home: Your listing agent will list your home on the multiple listing service (MLS) in order to better market your home to potential buyers. They also can make staging recommendations and hire a photographer to best show off your home and its features. They’ll schedule house showings, and can be present to answer any questions. Communication and negotiation: Communication is key to both buying and selling a home in order to minimize stress and misunderstandings. Listing agents take care of this important task, by staying in touch with interested buyers and their agents, fielding questions, handling paperwork, and negotiating the final sale price and terms. Recommendations: Seasoned listing agents might come with a list of professionals who they have worked with in the past that they enjoy working with in order to make the selling process smoother for you! Some of these professionals include: real estate attorneys or title companies, inspectors, stagers, those who specialize in home improvement AND of course trusted Loan Officers. How do I find the right listing agent for my situation? In order to find the right listing agent for you, make sure your agent is licensed and has experience, references, and a professional website where you can learn more about them and their qualifications. Most real estate agents work with both buyers and sellers, but some might specialize in one or the other. Once you find a few agents through referrals or online research, meet with them in person to ensure they meet your needs and work well with your personality. It is also important to ask questions during your meeting with them and it’s imperative that you determine what you’re looking for in an agent so you make sure you are happy with the product being delivered. Selling a home can be stressful, especially for first-time sellers. A listing agent can help by taking on some of the burden and providing the information and resources needed to help sellers make informed decisions. We work with agents on both sides of the transaction – if you have any questions or would like a recommendation for an agent in your area, please reach out to us!
Share by: