There are plenty of mortgages designed to help buyers from all walks of life purchase their ideal home, but some of them can have high-interest rates and require larger monthly payments. If you signed a mortgage with either (or both) of these caveats tacked on, but your financials have improved since then, you might benefit from exploring the different home loan refinancing offers.
Refinancing your mortgage can be a great tool to help you repurpose your current loan into something that’s better suited to your situation. Before you dive into the many home loan refinancing offers, here are a few things you’ll want to keep at the top of your mind.
Compare Refinance Options
Even if you’re going back to the lender you worked with when you originally bought your home, refinancing your mortgage will be, as Nerd Wallet says, “a new loan for them, just like it’s a new loan for any lender. The paperwork will be the same.” This can provide some degree of predictability since you’re familiar with the lender, but it doesn’t guarantee better rates.
Instead of settling for the known-quantity, spend some time comparing mortgage rates offered by different lenders, inquiring about the quotes they offer, and weighing the pros and cons of each. “When lenders know you’re shopping around,” Nerd Wallet explains, “they are more likely to compete.”
Consider “Buying Down” Your Rate
Maybe your credit score isn’t as high as you wish it were, or maybe the economy has driven up mortgage rates, but if you’re not happy with the home loan refinancing offers you’re seeing, consider “buying down” the rate. If you’re not familiar with “buying down” your rate, Mortgage Reports has a helpful explanation:
“Most lenders let you ‘buy down’ your interest rate using what are known as points. Each point you buy costs 1 percent of your loan amount. In most cases, buying one point will reduce your interest rate by 0.25%.”
So, if the rates you’re seeing aren’t what you want and you have the capacity to pay a higher upfront fee, buying down can be a solution worth considering.
The Value of Good Customer Service
You want to work with a company that won’t only offer you the best mortgage refinancing rates but also the best service. Remember, you’re talking about a significant investment that could save you a lot of money in the long run, so it’s going to be valuable to find a lender that wants to work alongside you.
Here at Poli Mortgage, for example, it’s our goal to offer some of the most competitive rates on the market while also providing our customers with a level of personalized, hands-on customer service they won’t find anywhere else. A lender that offers meaningful customer service is a lender that can offer the home loan refinancing offers you’re looking for.
Don’t Forget About Closing Costs
Like The Mortgage Reports says, “When you’re shopping for mortgage refinance rates, you’re also shopping for the lowest closing costs.” Closing costs can sneak up on you if you’re not expecting them, so it’s important to ask lenders what fees are included in their closing costs and how much they add up to.
With Poli Mortgage, however, you’ll have access to home loan refinancing offers with zero closing costs. This way, you don’t have to worry about being caught off guard by fees that you didn’t prepare for. If you want to learn more about the home loan refinancing offers Poli can offer, get in touch with one of our loan officers today!