If you want to save a considerable amount of money on your mortgage, one of the best options that you can consider is to refinance your home. Mortgage refinance basically helps homeowners to replace their mortgage with another loan, at a different interest rate and renewed terms. Hence, in order to make a judicious decision with regard to mortgage refinance, you should give due consideration to today’s mortgage refinance rates. If you can gather some pertinent information about the home refinancing process, you will definitely end up making substantial savings on your mortgage every month as well as over the entire period of your loan.
In case you are seriously thinking of refinancing your home, you need to take into account the different factors affecting your mortgage refinance decision, particularly the current mortgage refinance rates. In the US, there can be significant variations in mortgage refinance rates in different states. As such, when you think of refinancing your home so as to save money on your monthly loan payments, you should remember that today’s mortgage refinance rates should be notably lower than the interest rate you are already paying on your mortgage loan. Since mortgage rates fluctuate on a daily basis, lower rates will help you save thousands of dollars over the entire loan term.
To benefit from the fluctuations in mortgage rates, you will have to compare the changes in the rates over time for different mortgage products, like 30-year fixed-rate mortgage, 15-year fixed-rate mortgage, 30-year fixed jumbo mortgage, and 30-year fixed mortgage refinance, among others. For the various mortgage products, the rate of interest you have to pay on the loan depends on the loan term — that is, the shorter the term of the loan, the lower is the interest rate; and vice versa.
Moreover, a number of other variables also affect the rate that you will able to secure from the lenders on a mortgage refinance. Some of these variables are: the loan amount, loan type, down payment, your location, discount points you are willing to pay, and your credit score.
In order to benefit from mortgage refinance, it is generally advisable to have your home refinanced by your existing lender. The refinance process is mostly easier, and also less expensive, with an existing lender because the details of your payment history and the property mortgaged are already available with such a lender. Moreover, your existing lender will also not need to carry out a new property appraisal while refinancing; and will, in most cases, be prepared to offer better rates in order to retain a good customer.
Overall, the best mortgage refinance option, keeping in mind today’s mortgage refinance rates, is to get your existing lender to lower your interest rate, rather than going to a new lender who would require you to close on a new loan. Nonetheless, to gain maximum advantage from mortgage refinance, you should ask your existing lender about the cost savings that they offer to their existing customers who go in for mortgage refinance with them. In addition, you should also check out with competing lenders what terms and interest rate they are offering on mortgage refinance!