In today’s housing market interest rates are falling and you may be considering refinancing your home loan to take advantage of low interest rates. You may also think that your home’s value has increased.
Do you know when and how to determine if it’s the right time to refinance? According to experts, before stepping to qualify for a refinance you should find out how much your home is worth in the current market. It is also critical to consider how much you still owe on your current mortgage.
Another way to know when you should consider refinancing is to determine if refinancing is affordable. Expert suggests that the total cost of the refinance plus other debts should be no more than 43% of your gross income. Take note that your home refinancing will go smoothly if you have a high credit score.
Finally, you must remember to make sure that the refinancing is worth it. It s only worth it to refinance if you can make a monthly savings and you plan to stay in your home for years.
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