5 Signs You Still Have Refinance Opportunity

Wondering how you can keep up with your finances these days? You want to refinance, but you don’t have confidence that you can, or probably you’re afraid to do so this new year.

Stop worrying and start acting.

Here are 5 Signs that would give you the confidence that you still have the refinancing opportunity today.

1. Is refinancing beneficial for you?

If your answer is “yes”, then you are creating an opportunity for you to avail for refinancing this year. Grab the opportunity and don’t hesitate to evaluate all possible means so you could take a refinancing opportunity.

When you look at refinancing, this can benefit you in the long run. Provided, you will be able to balance all the deciding factors of availing one. Taking into consideration some factors that will be discussed below would mean so much for you.

2. Mortgage rates are in a low rate

In 2017, mortgage rates are still ranging up to 5%. National Association of Realtors (NAR), anticipates that mortgage rates will gradually climb with a fixed-rate average reaching 4.5 % by the end of 2018. Thus, it is still considered the best time to refinance.

By checking the market’s mortgage interest rate, you would be able to know if you can secure a lower interest rate. Once you are able to evaluate it positively, then another opportunity for refi is for you.

3. Your credit card score gets higher this time

If your credit score is getting better, then chances are, you can avail for refi. Building and maintaining a solid credit card history can have a good impact on your refinance application.

“If you want better interest rates to save yourself money in the long run, keep that credit score high. Work to repair your credit score by making house and car payments on time, paying off loans before the end of the loan period, and paying off your credit card in full each month.” – Ryan Goodrich of TopTenReviews stated.

While this is important, remember that there are banks that are still willing to give loans to individuals with low credit card score. Just prepare for possible thorough documentation and higher rates.

4. Your home equity is higher than your mortgage

It is important to note that the higher home equity you have, the more that you won’t need to spend cash to refinance.

Since home equity is on the rise and today’s mortgage rates are low, then it is indeed a perfect timing for you refinance your mortgage.

5. New opportunities come your way

You are aware that every time mortgage rates fall, pool of refinance customers grows as well. As a result, many banks are also busy with different schemes to entice these refinance customers to avail their service.

This will be an opportunity for you to sit down and list all possible banks which offer the least interest or the best option for refinance.

Always be wise in choosing between Adjustable-Rate Mortgage (ARM) and Fixed-Rate Mortgage based on your overall capability, reasons, and interest.

In conclusion,

refinancing would be beneficial for you if you are able to consider factors that would affect your overall interest.

As Chartered Financial Analyst (CFA) Don Taylor advised, you should always remember the three goals of refinancing: lower your total interest expense, make your payments more manageable as time goes by, and to convert your adjustable-rate loan to a fixed-rate loan.

Now, are you ready to refinance?