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Refinancing Your Home Loan

If you’re considering refinancing your home loan, Lynnwood mortgage loan officer David Haley can help you out. There are many options available and many questions to ask yourself before committing to a refinancing, and you will want a dedicated professional in your corner to make sure you come out the other end with more money in your pocket.

In a nutshell, refinancing is when you pay off your current home loan in full by securing a different home loan, preferably with better terms than your original loan. There are several reasons that people refinance; maybe they want to combine a primary mortgage with a second mortgage into a single loan, maybe interest rates have gone down and they want to take advantage, maybe they want to change the length of their payments, or maybe they want to change from an adjustable-rate mortgage into a fixed rate. Whatever your reason, it’s important to carefully evaluate the potential benefits of refinancing and make sure that it would be a worthwhile endeavor for your household.

First and foremost, you want to consider how much money you will ultimately be saving. A lower interest rate can mean nothing if you end up wasting the difference in fees. You will want to keep careful track of the fees that your specific lender will charge you, including any application fees, loan origination fees, appraisal, inspection, and closing fees.

Also, whether or not you are refinancing with your original lender, you may be subject to a prepayment penalty. This penalty would be written into your current mortgage, representing a fee that is charged if you repay your loan early. Not all loans include a prepayment penalty, so you’ll want to check your present loan terms if you’re not sure whether or not it applies to you.

After you’ve evaluated the expense of your refinancing, you’ll want to factor in the age of your current home and home loan. If you’ve been paying off your current mortgage for a long time, for example, it may not be worthwhile to lock into a better rate. The same goes if there is a chance that you might sell your home in the foreseeable future; the fewer years of payments you have left, the less time there is to benefit from a better payment plan.

Get the Application Started Now

If you need help answering these questions and securing the refinancing option that is going to work for you, call now to put David Haley on your case today.