INTEREST RATES ARETRENDING DOWN!

Are you considering refinancing?

If you missed out on financing your home with a historically low interest rate, now might be the
time to refinance. Start here.

Call your real estate agent. You must have a good idea of your home’s value. Your eligibility to
refinance depends on your loan type, your credit score, and how much equity you have in your home. Equity is the difference between market value, and what an owner owes on the home. In order to refinance, ALL liens against the property must be paid off. This includes home equity loans, and other liens such as solar panels or tax liens.

• After you determine market value, call a lender. The bank or lending institution that you used to purchase doesn’t have to be your go-to. However, they might offer a discount for a repeat client, so try them first!

• What is your current interest rate? For a standard refinance, the rule of thumb is that interest rates must be 1% lower than your current rate.

• Do you have an adjustible rate, or ARM? If so, consider locking in a 30 year mortgage. Don’t roll the dice hoping rates will go lower!

• Be honest with yourself. Are you going to stay in this home for another 5+ years? If so, proceed.

• Is relocating for a job in the cards for your family? If so, be cautious. Fees to refinance can add up!

Per Andi Lentz, with Prosperity Home Mortgage: “Even if homeowners are not thinking about moving, refinancing now could lower their monthly payment, improve cash flow, or even help them tap equity strategically.”

John Dillon, with VanDyk Mortgage, says “on larger loan amounts, a smaller decrease in rate can still make a big difference in payment. The entire financial picture is very important to keep in mind.”

While refinancing isn’t free, it can save you a lot of money in the long run. Ask lots of questions, and choose your lender wisely!

Go Deacs! Cheers to baseball season! Tori