Chances are that over the course of a typical mortgage, you will have an opportunity to refinance.
Refinancing your mortgage may help you save money by lowering your interest rate and can make monthly payments more manageable by stretching out the remaining loan term. It’s a simple way to stabilize your financial situation and obtain peace of mind.
If you have a second mortgage, refinancing can address those same objectives as well as reduce or eliminate private mortgage insurance (PMI). Refinancing your second mortgage can also help you change the term of your loan and get cash back at closing. In some cases, refinancing allows you to consolidate your first and second mortgage into a single loan.
You can also refinance to convert a home equity line of credit (HELOC) into a fixed-rate loan, potentially lowering your interest rate while giving you a predictable monthly payment.
Refinancing costs vary, and can range from $2,000 or less to $20,000 or more, depending on factors such as loan value and the number of discount points associated with the loan. Borrowers should always be mindful of closing costs. You may be tempted to pay a substantial amount in points to get a lower rate, but this may not be the best way to go.
If you're in the market to refinance, be sure to get all income and asset verification, tax returns, W2s, paycheck stubs, and bank statements to the lender.
Remember that rates fluctuate. If you're looking for a particular interest rate, your window of opportunity can be as short as a couple of hours. If your lender already has all your paperwork on hand, you'll be positioned to get preapproved for the loan and be able to lock in your rate when rates reach your target range.
Then, choose the refinance option from BBVA that’s best for you:
A BBVA fixed-rate mortgage offers safety and security by keeping your monthly principal and interest payments the same throughout the term of the loan.
Government loan programs can also make refinancing your home a little easier. These programs may offer options such as low down payments, low closing costs, and easier qualification.
Adjustable-rate mortgages provide initial cost-savings and can be a good deal if you plan to stay in your home for a relatively short period of time.
Whatever your current mortgage situation, refinancing may provide an opportunity to save money and accomplish other financial and personal goals. Let us help you determine the best option for your situation. Contact a BBVA Mortgage Specialist today!
How do you know if you should refinance your mortgage and what is the best way to do it? Find everything you need to know to make a decision.
Thinking of refinancing before rates jump? Hold your horses. Make sure to consider these 8 questions before you refinance.