Six questions to ask yourself before refinancing
Refinancing may sound like a great way to save money, but before you apply, answer these five important questions.
Do I have the time to refinance? Like anything else that requires research and involves fine print, one must be able to set aside time to be cautious and through.
Will refinancing be profitable? It is possible to lose money on a refinance, and it’s up to you to determine whether you can afford that risk.
How much are the fees associated with refinancing? There are standard fees such as lender, title, inspection, insurance and other charges when refinancing. Don’t forget to factor in these upfront costs.
What is my credit score? The better your credit score the better chance you have at a lower mortgage rate. If you have bad credit you may be unable to refinance.
How much equity do I have in my home? Use a loan-to-value calculator to figure out your percentage (lender’s are looking for at least 20%)
Do I qualify for a low rate? Consult a trusted lender and factor in the actual rate you qualify for to determine if you should still refinance.
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