For many homeowners paying off their mortgage, the decision to remortgage can be a little more complicated than they would imagine. Many assume that simply because interest rates drop, they should refinance. However, this is not always a good idea. There are many other factors to account for when deciding to refinance or not. After all, you must experience maximum benefits as a homeowner.
Mortgage Refinance in Phoenix, AZ
If you are wondering whether or not you should refinance, here are the things you must do to ensure the best benefits:
- Set your refinancing goal. The first and most important thing to do before deciding even to refinance is to set a refinancing goal. This goal can vary from individual to individual and can be anything from lowering the monthly repayments to simply saving money. These goals will affect the refinancing solution you end up with. For example, if your goal was to lower monthly payments, you may opt for something that does not necessarily help you save money. Such a refinancing solution can be a mortgage that extends the payment you are making now while also increasing either maintaining or increasing interest rates. Effectively, what it does is lower the amount you pay monthly at the sacrifice of fewer savings. Again, your decision must be based on a specific goal, and not just because the “rates are lower.”
- Outline the cost of refinancing. Remember, refinancing still costs money. Fees and payments are still involved in the process, which, in some cases, can cost you a hefty amount. While you may not have to pay some of these fees upfront, you will eventually pay for them. When looking at any refinancing option, you must pay attention to the cost. While a deal may offer an incredibly low rate, it may be compensated with high costs to cover fees and such. To ensure that you get the best deal, proceed carefully. Ask for an estimate to fully understand what you are getting into. You should also try to figure out your break-even point. The break-even point is the point where you realize savings after paying off the cost, which is crucial to help you know whether or not the refinancing solution is worth your time.
- Shop around for the best deals. Keep in mind that you should not go for the first deal you run into. You never know if there are better deals out there with better break-even points, lower monthly payments, higher long-term savings, and so on. For that reason, always do your research and hunt for the best deals. You should pay attention to the lenders themselves; make sure to work with reputable and trustworthy individuals and institutions only. An excellent way to do this is to work with a mortgage firm or professional to help connect you to trustworthy sources that you can rely on for a good deal.
Refinancing in Phoenix with Desert Springs Mortgage LLC
In summary, do not ever base your refinancing decision on rates alone. Consider all of the above factors and put them into play when deciding whether refinancing is worth your time and money. That way, you can maximize your ability to achieve your goals. Whatever that may be, whether it be to lower monthly repayments or better savings, you will stand a much higher chance of succeeding.
Desert Springs Mortgage LLC is a full-service mortgage brokerage in Phoenix offering conventional loans, hard money loans, and various other financing solutions to satisfy your needs. Get your mortgage refinance with us today and call us at (623) 432-1309 to achieve your financial objectives!