So, you’ve been paying your mortgage on time for the past few years and now it’s finally time to refinance. The only problem is that there are a lot of different options out there and it can be hard to know which one will work best for you. This blog post explains how home equity impacts your ability to refinance.
Homeowners often ask themselves, “How do I know if I have less than 20% equity in my home?” Equity is the difference between what a homeowner owes on their mortgage and the current market value of their home. In order to find out if you have less than 20% equity in your home, first, calculate the value of your house by subtracting all outstanding mortgage debt from the current market value (the fair market price).
If you have more than 20% equity in your home, refinancing may be a good option for you. It is one of the best ways to save money on interest and get out of debt quicker. Consider these reasons why it’s worth it: -You are likely paying too much in interest because your mortgage rates are higher than they need to be. With a refi, you can lock in today’s rates so that you’re not overpaying on your loans.
Refinancing your mortgage is a great way to save money on interest. It can also be an opportunity for homeowners to make their monthly payments more manageable or provide them with cash for large expenses, like a home renovation or medical bills. There are many considerations when refinancing that you should discuss with your loan officer before taking any steps in the process. You’ll want to know if you qualify, the time it will take, and what fees you might have to pay as well as whether refinancing makes sense financially for you right now. If so, then don’t hesitate!
Handshake Home Loans Inc. is here to help. With a broker, you don’t have the same pressure that comes with working directly with lenders and banks, which can be stressful for some people. Our brokers are experts in their field who will work hard to find you the best possible loan match at competitive rates, so you can get your credit score back on track without having to go through all of the trouble yourself.
Give us a call today to see how we work!
Handshake Home Loans Inc.
16260 N.71st St, Suite #450, Scottsdale, AZ 85254
Phone Number: 1 (888) 524-4513
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