Thinking of refinancing? Avoid these 5 things!

Dated: March 15 2021

Views: 72

5 Refinancing Mistakes to Avoid

Mortgage interest rates are the lowest they’ve been in years and perhaps you’re wondering if it’s time to refinance your loan. With them starting to go a bit higher, so you may feel the pressure to get it done! Lenders advertising their refinancing services make it sound as easy as filling out a form and paying less each month. While refinancing does not need to be complicated, here are 5 common mistakes that could cost you thousands of dollars over the course of the loan. Refinancing can be a great experience if you can avoid making these mistakes.

1. Not Shopping Around – Not all loans are structured the same. It’s important to compare your options. Even loans with the same interest rate can have different costs, fees, and terms.

2. Shopping for Too Long – Interest rates change quickly and, in this volatile market, it’s possible to lose a great interest rate by looking for too long. Consider getting three different loan options at the same time and choosing the best option out of those three to work with.

3. Adding Years to Repayment – Interest rates are not the only consideration in deciding to refinance. If you are 7 years into a 30-year loan, restarting the clock with a new 30-year loan can cost you thousands of dollars. Never refinance with a longer term than your current status.

4. Not Considering Your Job Stability – The pandemic has created instability in the job market; consider your employment situation carefully before using precious savings for loan costs. Additionally, if you are moving from a 30-year loan to a 15-year loan, your payment might go up. Make sure you have the income to comfortably pay that increase each month.

5. Assuming Your Credit is Great – Before looking for a refinance, check your credit score and make any adjustments before you get a surprise at closing.

This is a great time to reduce your mortgage interest rate, while rates are low. Consider all the aspects of the refinance offer first and make sure you get the best option to save money.

We hope this information is helpful! And remember that when you are ready to sell your home, we are here for you!
Samanthia, Sabel & Rebecca

Brunker Realty Group

Blog author image

Samanthia Ramsey Brunker

About Samanthia Ramsey Brunker- I have a Client-First Philosophy! I Love Real Estate! That is why I became an agent back in 2001. I enjoy helping Buyers and Sellers achieve their Dreams! When I am not....

Latest Blog Posts

Have you been thinking about a home bar? We are too!

{5 Tips to Create a Home Bar}So many businesses have been affected by the events of 2020, causing permanent and temporary closures of many of our favorite spots—including the corner bar. The

Read More

Thinking about selling your family home? We can help you!

Selling the Family Home?Family is important, and your decision to sell your home may be difficult for those closest to you. Moving can create mixed emotions, and it’s important to help your

Read More

Are you an active or retired military person? And are you ready to buy a home?

{Special Benefits of the VA Loan}Our military veterans have given so much to this country. To make it easier for these special families to qualify for and purchase a home, Veteran Affairs has a

Read More

City VS Suburbs? Which one do you prefer? Do you need help?

Is the Suburbs right for you?The common assumption is that you live in the city when you’re young and then move to the suburbs when you’re ready to settle down. While no one can deny

Read More