Refinancing your mortgage can be a smart financial move, but misconceptions often keep homeowners from taking advantage of lower rates and better loan terms. Let’s debunk some common myths so you can make an informed decision!
Even a 0.5% reduction in your rate can lead to significant savings over time, especially on larger loan amounts. It’s worth running the numbers.
While refinancing can reset your loan term (e.g., switching from a 30-year to a new 30-year), you can also choose a shorter term (like 15 or 20 years) to pay off your mortgage faster!
While a higher credit score helps, many loan programs cater to borrowers with less-than-perfect credit. Plus, you may qualify for FHA, VA, or other refinance options.
Refinancing does come with closing costs, but you may be able to roll them into your loan or find a no-closing-cost refinance option. Additionally, working with a lender that offers no lender fees can help keep costs lower. If you plan to stay in your home long enough, the savings can outweigh the upfront costs!
There’s no limit to how many times you can refinance—as long as it makes financial sense. If rates drop again or your financial situation changes, refinancing could be beneficial!
The key is to evaluate your current mortgage, goals, and potential savings.? If you’re unsure, schedule a consultation to speak with a loan officer. We’re here to simplify the process and get you the best deal possible.