Did you notice that more people are refinancing their mortgages lately? This is due to the significant drops in mortgage rates over the past few months. Therefore, it’s a great time to get an excellent rate. Before you do, we will debunk some common misconceptions about mortgage refinancing first to ensure you’re on the right path.
Common Misconceptions About Mortgage Refinance
- You Need to Reset Your Loan. Some people hesitate to refinance their mortgage because they’re afraid it would reset the clock on their loan. However, it doesn’t work like that. You would only pick up where you left off with a lower rate.
- Your Home’s Equity Will Be Affected. Some people believe that refinancing their mortgage means they will lose the equity they’ve built over time. The only way that could happen is if you do a cash-out refinance wherein you borrow more than your existing mortgage balance. On the other hand, if you only choose to refinance your existing balance without adding to it, it won’t affect your equity.
- You Need to Wait a Year to Refinance Again. If you recently had a mortgage refinance, you might think you can’t swap out your loan again. Generally, you can refinance as long as it’s been six months since you last did so. Keep in mind: you will need to pay for closing costs every time you refinance, which is why it’s not the most brilliant move. But, if you have a pressing reason to refinance again after six months, then go for it.
- You Get Non-Negotiable Closing Costs. Refinancing your mortgage isn’t all about the good stuff. Its downside is you need to deal with closing costs to get the new loan. The good thing about this is that you can bring those costs down. Therefore, it’s not true you get non-negotiable closing costs with mortgage refinance because you can do something about it. To work on your closing costs, it’s important to work with a mortgage specialist to help you on ways how you can lower down the closing costs.
Save More Money on Your Mortgage
Now that we have debunked these common mortgage refinance myths, why don’t you take a step to lower your mortgage today. Make sure you get the right information about it, though, especially if you’re on the fence about it.
Shopping around with several lenders is a great way to know which refinance plans you qualify for. By refinancing your home, you can get a lot of savings, especially at today’s rates.
Refinancing in Phoenix With Desert Springs Mortgage
Due to the popularity of mortgage refinancing these days, it’s no surprise that misconceptions also resurface, which causes hesitancy among many homeowners today. That is why it’s essential to keep yourself informed with the right details to make the best decision for your mortgage.
Take advantage of the great mortgage rates today and refinance now. If you don’t, you could lose substantial savings. Make sure you speak with a professional to help you through this process. After all, mortgage refinance involves a lot of technical details that could be difficult to wrap your head around.
Do you need help with your Phoenix home loan? Desert Springs Mortgage is a full-service mortgage brokerage focusing on the purchase market through realtor partnerships and outstanding customer service. Contact us today at (623) 432-1309.