For many, the word “refinancing” when it comes to your home can come with a lot of fear and a lot of questions, but that doesn’t need to be the case. What does refinancing look like? Will it even really save me any money?
Well, for many homeowners, refinancing can not only lower your monthly payments and help with your monthly budget, but it can also save you thousands of dollars in the long run. That being said, here are some myths about refinancing and what the actual truth to them is:
IT’S TOO LATE.
No, it is not too late to refinance. For years now, we’ve been hearing that interest rates will be on the rise. Who wants to refinance when your interest rate will be higher than it is now, which would end up not saving you very much money at all. Although there have been some small increases, you’re still in a great position to drastically lower your interest rate if you get in at the right time. The general rule is if your mortgage interest rate is more than one percent above the current market rate, you should consider refinancing.
IT’S GOING TO BE TOO TIME CONSUMING.
No it will not. If you find yourself a good lender, they will walk your through every step and help take the headache out of the entire process. Don’t brush off refinancing just because it seems like a long and daunting process because this isn’t always the case. Once you find a good lender, it will only take a few minutes to have an informational call with them to see how rates compare and if refinancing is a good idea for you. On top of a good and knowledgeable lender, there are also some programs for streamlining the application process, which could make the time it takes to refinance seem like nothing. And besides, isn’t the amount of money you could save worth the time and effort?
ARMS CAN’T BE REFINANCED.
This is just not true! Seeing your Adjustable Rate Mortgage (ARM) increase after the introductory period can be incredibly stressful and place a squeeze on your budget. Many people assume they’re stuck, but ARMs can be refinanced, just like fixed-rate mortgages. You can even switch to a shorter term fixed-rate mortgage, such as 15 or 23 years. The longer you’re planning to stay in the home, the more sense it makes to look into refinancing.
If you have any more questions about refinancing, please don’t hesitate to call us at 928-771-1111. We’d love to help you out, or connect you with a great lender who can help answer your questions!