Mortgage interest rates continue to be historically low and many Jersey Shore homeowners are taking advantage of it by refinancing their home. Prior to refinancing your home, determine if the process is worthwhile when it comes to saving you money. Here are few tips to maximize your savings during refinancing.
Prior to refinancing your current home loan review what your current loan balance is. Knowing this amount you can determine how much you will save, taking into consideration current refinance rates and fees associated with refinancing along with other closing costs you may incur. This number also gives you a starting point when determining what you want your future loan terms to be.
Have you been working to improve your credit score? Has it improved since you took out your current mortgage loan? If so, then the good news is that a higher credit score will allow you to obtain a lower mortgage interest rate. Obtain your free annual credit score from AnnualCreditReport.com and review it for any inaccuracies. If there are any errors contact the three major credit agencies to get the errors removed.
If your credit report is accurate and your credit score is where you want it to be, it’s time to cut spending. Don’t open any new credit cards or make large purchases until your refinance is complete. This helps protect your credit score throughout the process.
Just as you would shop around before purchasing a car, do the same when it comes to a mortgage loan. Many consumers only shop one lender when it comes to obtaining a mortgage. However, shopping around various lenders could save you thousands of dollars. The rule of thumb is to shop at least three mortgage lenders
If you did not have 20 percent down of the original purchase price of your current mortgage loan then you more than likely are paying for private mortgage insurance (PMI) each month which can be costly. Save money during your refinance by ridding yourself of PMI if your home has appreciated in value since you purchased it, and you now owe less than 78 percent of the purchase price.
If you are looking to buy or sell a home along the Jersey Shore, contact us today for a free home valuation. The Ferzoco Group are experts in real estate from Ocean City to Cape May. If you are looking to buy a new home or sell your existing home, we’d love to hear how we can help you reach your real estate goals. Our job is to make your tomorrow better than today. Contact us today via email or give us a call at 609-264-6762