Estimated read time: 3-4 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
Looking around for ways to trim the monthly expenditures? Hoping to find some extra dough to help pay for medical expenses, your kid's college tuition, or to prepare better for the future? With interest rates still being offered as low as they are, now might be the right time to refinance your home and save extra cash each month.
Here are four things to know about refinancing your home.
The right time
There is a time and a place for everything. You've heard that before. Well, in this case, it's very applicable. If you currently have an interest rate that's two percent or more higher than going rates then you should think about refinancing - especially if you have several years left on your mortgage loan.
The right purpose
In his Guide to Lenders, freelance financial writer Richard Barrington outlines 10 ways to streamline a refinance, including defining your purpose.
He suggests you start by identifying exactly what you want to achieve. Is it to reduce the loan amount? Extend the terms? Lower your payments? The list goes on and on.
Find a realistic interest rate — one that you feel justified paying considering your credit rating and financial history. Ask yourself what has changed since you last applied for financing. What do you still owe on your mortgage? What are your current debts? All of these things matter when considering a refinance.
Don't forget to find out how the market is for houses in your neighborhood and price range and whether or not there are prepayment penalties on your current mortgage loan.
The right place
After doing your own research about interest rates, go visit a reputable financial institution and meet with an expert. An expert can walk you through the process, answer your questions and help evaluate your options. Plus, in moments like these, a little hand holding never hurts. A loan officer should also be able to help you understand what closing costs might arise from refinancing or if there are any other fees you'd encounter if you decide to refinance.
The right answers
Certain research lenders can work with the numbers and help you understand options. If you are a veteran you may qualify for special offers. Be prepared to tell the lender what you're hoping to do, your current interest rate, your credit score, your military branch and the estimated value of your home.
If you're not a veteran, you can still qualify for great deals. With so many factors in favor of refinancing, be sure to do your research and see how you can save money.
The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice.
Zions Bank® Member FDIC, Equal Housing Lender, NMLS# 467014 ZionsBank.com®.
