4 Secrets to Finding the Best Current Mortgage Refinance Rates in 2017
So you finally intend to refinance, but current mortgage refinance rates are rising. Well, don’t worry as you can still benefit from current refinance opportunities. Historically, mortgage rates are still low and under 4% and aren’t expected to cross 5% this year. Home ownership has never been more achievable with such rates. Though a low-interest rate is only one aspect of opting for a certain creditor, finding the best mortgage rates should be your first priority.
Purchasing a home can be a nerve-racking experience, but exceptionally advantageous in the end. Mentioned below are four smart tips for finding the most favorable current mortgage refinance rates that will ease your search:
1. Compare Rates
Comparing the different current refinance mortgage rates should be your first step after you find the property of your choice. It is also likely that your broker or real estate agent will refer you to lenders who have already worked with him/her before. Consider the recommendation with a degree of doubt and remember that a typical agent will always try to close the deal as quickly as possible. However, getting a mortgage isn’t always simple, particularly when you’re a first-time purchaser. You should look at different options for the best deals as even a little rush can cost you a lot.
Regardless of your choice of lender, it is always smart to explore your options.
2. Bring Your Credit Score in Good Shape
Your credit score plays a significant role in the current mortgage refinance rates you can get. Consequently, keeping your credit history in top shape should be your priority, especially when you’re seeking a conventional loan. Making timely payments on your bills, checking your credit report for errors and maintaining a safe distance from your credit limit are some ways of improving your credit score. The higher your credit score, the better your mortgage rate and the more loan options you’ll have.
3. Make a Big Down Payment
Though it can be hard to increase your down payment, paying more up front can help you get better current mortgage refinance rates. This includes a reduced amount for monthly payments and saving more over time. You can also avoid the expensive mortgage insurance costs that many creditors charge when a borrower makes a lower than normal down payment.
4. Consider How Long You Expect to Be In Your Home
Looking at adjustable-rate mortgages (ARMs) can seem more worthwhile when you expect to be in your house for a relatively short period before selling. This is because you can leverage lower initial interest rates offered by ARM and then sell out the property before the rates can increase/reset. However, you must be absolutely sure about your short-term residency in the house. If you are unable to sell, it is likely that you will be hit by an increased interest rate.
Consider a short-term fixed rate mortgage in case ARM seems like a massive risk to you. Though your monthly payments will be larger, you will get a much lower interest rate. This means that you will be paying much less over the lifespan of your loan with the added advantage of increased equity.
If you would like more information about any of these mortgage types, please take 2 minutes and complete our online form and a mortgage specialist will get right back to you!