When it comes to the current mortgage refinance rates, something as small as a fifth of a percentage point can save you tens of thousands of dollars over the lifespan of a loan. Hence, purchasing the best current mortgage refinance rates is essential.
Are you wondering about the present mortgage interest rate environment? If so, don’t worry too much because you can get a good deal. Though mortgage rates have slightly risen since last year, current rates are still very low and aren’t likely to exceed 5% in 2017 according to various experts, mortgage analysts and economists.
Despite what the current rates are, mentioned below are seven smart tips for purchasing the best mortgage refinance rates in today’s market:
1. Be Quick
Though current rates are low, they will steadily move upward in the next two years according to many experts. Hence, if you intend to opt for refinancing, you are likely to pay more next year. So, it would be a sensible choice to refinance as soon as possible in terms of closing costs and fees.
2. Be responsive to dropping rates
Since current mortgage refinance rates are steadily rising, a smart choice would be to turn in your refinancing application as soon as possible. You may miss a drop in the rates if you fail to put in your application at the right time.
3. Get an Adjustable-Rate Mortgage (ARM)
It seems worthwhile to refinance into an ARM because such loans tend to carry considerably lower initial interest rates than a fixed mortgage. These are especially more advantageous when you plan to stay in your house for no longer than the fixed term as specified in the loan agreement.
4. Improve Your Credit Score in a Good Shape
In case your credit score is below par or isn’t in a good shape, acting fast on the current mortgage refinance rates may not provide you with the ideal rates. In fact, your credit score determines what rate you may get on a mortgage. Simply because low rates are available at the moment, there is no guarantee that you will qualify for them.
5. Refinance To a Shorter Term
· More savings with less interest paid over the lifespan of the loan
6. Leverage the Rising Home Prices
7. Pay Points
You will always have the option to pay money upfront before your mortgage closes to decrease your overall loan rate and payments. You can also pay points on your mortgage if the additional cost seems favorable.
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