Connecticut Lowest Interest Rate Mortgage Refinance Loans - 3 Ways to Get a Low Rate Refinance
Getting the lowest rate possible when refinancing is very important. If you are looking to refinance to lower your monthly payment the lowest rate will give you the lowest payment. If you are looking to get cash back when refinancing the lower your interest rate the lower your monthly payment. Since not all refinance loans are created equal your should follow these three tips when applying for your loan to get the lowest interest rate mortgage refinance loan here in Connecticut.
1. Refinance It All
If you have a 2nd mortgage or home equity line of credit you may look to refinance both loans together into your new loan. Leaving a 2nd mortgage in place increases the risk of your new loan and can increase the cost of your new loan. Combining the two loans may also reduce your monthly payment compared with the 2 payments. Lets explore both options and find out which is better for you.
2. Don’t Cash Out All Your Equity
Receiving cash back at closing, or "cashing out" can also raise your interest rate. The more equity in your home at closing the lower your interest rate could be, the less equity you have in your home the greater the risk to the lender and in turn the interest rate for your loan. If you plan on "cashing out" we should explore the amount of money you need and if different amount could impact your final cost of your new loan.
3. Lower Your Rate With Points
No one likes points and considering the common thought is that they just pad lenders pockets it is no wonder no one likes them. In reality they will get you a lower interest rate for the life of your loan. Planning in being in your home long enough that they make sense, a doubling or tripling your "investment", we should explore if they make sense. If they will not provide enough return they should be avoided. Before simply saying "No" we need to talk and find out what the options are with and without points and which option is best for you. If your goal is to save money picking the option that saves you the most money is the right option.
Just remember that the lowest interest rate will not always be the cheapest loan. Factor in the cost of closing costs when comparing your options. I look forward to helping you get the lowest interest rate mortgage refinance loan here in Connecticut.
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