We all see the ads for low mortgage rates and news articles advertising record low mortgage rates but what is a low mortgage rate? Is it a good time to refinance your mortgage? Before you decide, you need to find out if a refinance will help you meet your financial goals sooner. There is no cost to contact a mortgage professional and ask a few questions to find out if refinancing is right for you. Just because it worked out for your neighbor or your best friend, your situation may not be the same.
When you refinance you are not necessarily paying off your loan any faster so if that is a major financial goal you may want to refinance into a shorter term. Are you planning to move soon? If so, you may decide that a refinance is not a good option at this time.
If it looks like a refinance is a good decision, the next step is to find out the current value of your home. Housing values have been declining the past few years and the appraised value of your home may be less than you think. You may think that you have more equity in your home, but in reality you do not or you might even be underwater – a situation in which you owe more for your home than the amount of equity in your home. These are topics to discuss with a mortgage professional.
A refinance can make cash available for home improvements. There are many options to consider when deciding to refinance your home. Let a Standard Bank mortgage officer help you with your homework. At Standard Bank we are always here to help at: mortgages.standardbanks.com