Refinancing can seem daunting. Making time to meet with a loan officer, pulling all of the necessary documents, answering a lot of questions — it can be intimidating, but considering the money at stake, it’s undeniably worth the consideration. Prospera Home Loans has licensed loan officers that can help you breeze through the process.
If you’re serious about refinancing and looking for ways to save, check out the tips below to get started and to see if a refinance is a viable solution for you.
Consider how long you’ll be living in your home
How long do you plan on staying in your current home? Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run. Fees and interest rates need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.
Know the fees associated with your current mortgage
Your current loan provisions may issue penalties for paying off your home loan early. Speak with your loan officer to ensure that your refinance rates will cover any applicable fees.
Know your credit score prior to applying
Review your credit report and get a copy of your credit score before you begin the refinancing process. Report any errors you find, and avoid actions that may lower your score. Having a higher credit score is more likely to result in a favorable interest rate and refinancing offer.