May 31st, 2021 | Updated on June 2nd, 2021
Sometimes refinancing is not only a good idea, but the best idea. If you know what you are doing, it’s not that difficult. That said, when it comes to finance, many people shy away from learning these simple steps.
We’re going to walk you through the process, step by step so that you know where to begin with refinancing to achieve your financial goals.
Let’s start off with the chief reasons that people refinance!
Reasons Why You Might Want To Refinance
A refi can make sense for a number of good reasons. Here are the most common reasons where it just makes good sense to refinance:
- To pay off your loan quickly – Some people refinance a 30-year mortgage into a 15-year plan. While you pay more monthly, your house gets paid off in half the time.
- To reduce monthly payments – On the opposite spectrum, some people refinance to change a 15-year mortgage to a 30-year or simply to get a loan with a better interest rate as their credit improves.
- To switch to a fixed-rate loan – Adjustable-rate mortgages often become costlier, making refinancing for a fixed-rate loan a sensible option.
- To get a cash-out refinance – Sometimes you can borrow more than you owe and get a check for Equity in the process, at a lower interest rate to boot!
If one of these reasons sounds good to you, let’s review what you’ll need to do to get on track for your own refinancing.
Step 1 – Decide What You Are Looking To Accomplish
You’ll need to decide which of the previous reasons that we’ve listed are your ultimate goal. After that, you should use an online Mortgage calculator to see what kind of costs are going to be involved to make sure that refinancing is a feasible option.
Step 2 – Comparison Shop To Find The Best Rates
Next you will need to compare lenders to see who has the most competitive rates. Take your time with this part, as rushing to get it done can really cost you!
Step 3 – Select Your Lender
The lenders that you’ve narrowed it down to will have loan estimate options that can let you know how much your closing costs are going to be. Find the best and you are ready to proceed.
Step 4 – Lock That Interest Rate!
Always lock in your interest rate. Locking in your interest rate means that it won’t go up – ever. This is generally going to be in your favor, so it’s a good idea to get your interest rate locked to avoid any expensive modifications to your loan terms.
Step 5 – Time To Close Your Loan
At this point, you are ready to pay the closing costs and to finalize your loan. Congratulations, you’ve just refinanced your home. If you’ve been careful with these steps then you’ve probably saved yourself a lot of time and money!
If You Aren’t Confident With The Process, Get An Expert!
If you aren’t sure about refinancing, it really pays to get an expert onboard. It also can save you a lot of time, because even though the process is easy it is very time consuming. To this effect, enlisting a reputable expert such as Network
Capital Funding Corporation is a very good idea.
You can save time, meet your financial goals, and go on with your life, secure in the knowledge that you’ve gotten the best refinance options available.
So, you’ve got the steps and the next one is up to you. Refinancing is a great option as your credit improves over time and we hope that you get the deal that you are looking for. If not, don’t forget that experts like Network Capital Funding Corporation are there to help!
We wish you the very best with your refinance and with your life!