April 11, 2020
With mortgage interest rates at record lows, many homeowners and real estate investors are considering refinancing their properties.
Before you jump into refinancing, it is important to consider different factors to ensure it will be beneficial to your situation. Issues such as how much you own in your property, and how your credit score is and if you have savings to pay closing costs should be evaluated.
It might not be a good idea if there is less than half a percentage point between current interest rates and the rate that you had in your current mortgage.
Pay attention to the interest rate over the APR. The APR will give a better estimate of how much the loan will cost in total, not the interest rate. The interest rate is how much the lender is charging you for the loan. The annual percentage rate (APR reflects the interest rate plus most of the fees that the lender will charge when closing the loan.
Shop around for the best rate. It is recommended to get at least three different quotes from lenders and make sure to give each of them the same information.
Be careful with no-cost loans, in many cases the no closing costs are simply added to the loan rather than being charged upfront. In many cases, the no-cost loan affects the interest rate and in the end, you might be paying more for the total cost of the loan.
We at Coldwell Banker work hand in hand with our longtime partner Guaranteed Rate Affinity to provide clients with the best possible service while searching for their best Loan options.
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