The amount of advertisements focused on getting you to refinance your mortgage is staggering. Refinance transactions can be very profitable for the companies that execute them, but does that mean it’s best for you? The following list can be used to help determine if refinancing is a good idea.
Most Recent Mortgage Statement
To analyze if a mortgage refinance is best for you, a mortgage professional must compare your current situation against your rates in the present market. The easiest way to get accurate data on your current mortgage is by taking a look at your most recent mortgage statement.
Original Balance and Close Date
This information is not mandatory but knowing your original balance and closing date of your current mortgage helps a professional gain understanding of how your current loan was put together. The more information you can provide, the better comparison that can be made against a new situation.
One of the primary factors in determining rate and loan program on a new mortgage is your credit. You don’t need to know your exact credit score, but having an idea is helpful. A credit score over 720 is ideal, but not required to have a refinance. If you’re interested in raising your credit score, check out this blog on credit scores.
Homeowner’s Insurance Premium and Renewal Date
Many mortgage payments include homeowner’s insurance escrow accounts. Knowing this helps determine how much of your payment and current mortgage is being impacted by your homeowner’s insurance.
Ask what the break-even point is. If you are currently discussing a refinance, make sure you ask how long it will take you to keep the new mortgage before you break even on the cost involved in obtaining the new mortgage.
Curious if a refinance is best for you? Schedule an appointment below to talk with one of our Mortgage Advisors!