You know you need top mortgage lenders when buying a new house. Finding the right mortgage lender is essential when refinancing, too!

How do you know when it’s time to refinance your home loan? If you think you’re stuck with high monthly mortgage payments, refinancing could be the answer for some financial relief! Refinancing can also help you adjust the length of your mortgage or consolidate debt.

There are plenty of reasons why refinancing could work for you—but the timing is everything. The HomeSoon Lending Team can help you determine if it’s the right time to refinance your home loan. Homeowners and future homeowners: keep reading to learn more!

What Is a Mortgage Refinance?

Refinancing your mortgage means a homeowner can replace a current home loan with a new loan for the same property. You don’t have to sell and “re-buy” your home. However, you do have to go through a new loan application and qualification process to receive a new mortgage.

Working with only top mortgage lenders can help you if a refinance makes sense for you. They can also help you through the application process to make sure a refinance is a better home loan than the previous loan you chose when you first bought your home.

When Is the Right Time Refinance?

Depending on your financial goals, refinancing can make sense. However, before you apply for new home loan terms, weigh your short-term and long-term financial goals when considering an adjustment to your mortgage. You will have to pay closing costs on a refinanced mortgage. Make sure the new monthly payment and terms work in your favor before jumping into a new home loan.

Work with trusted, top mortgage lenders to determine if any of the following reasons make it an excellent time to refinance.

Lower Your Interest Rate

  • One of the biggest reasons people refinance is to lower their interest rates.
  • A lower rate can decrease your monthly mortgage payment.
  • This helps homeowners pay less interest over the length of the loan.

If your interest rate is higher than 4%, it’s time to consider a refinance while mortgage rates are lower than ever! Remember that rates will rise again. When rates dip lower, reach out to top mortgage lenders to start the refinancing process before rates go up again.

You Don’t Plan To Move

Finding the home of your dreams is something worth holding on to! No matter when you decide your home is your “forever” home—whether it’s your first house or what you hope will be the last house you ever buy—if you plan to stay for the long-haul, home refinancing can be a good idea. 

  • Remember to wait for favorable rates and terms.
  • It can pay off to watch interest rates and stay in touch with a mortgage lender you can trust.
  • Let them know you plan to stay in your home and to contact you when rates go below your current mortgage rates.

Paying less for your home over time can improve your long-term finances.

It’s Time to Renovate

If you decided to stay in your house for a few years, a refinance can help you with funds to renovate. Choosing to stay doesn’t mean you’re stuck with your home as-is! Finding a home and community you love isn’t easy: lowering your mortgage payments can help you stay where you want to be and update your home to make it suitable for your future.

  • Maybe you plan to grow your family, or it’s time to upgrade your house from dated interiors or finally apply some much-needed repairs.
  • Work with top mortgage lenders to work through the best refinance options for your needs. The savings you experience from a lower monthly mortgage payment can go toward renovations.
  • You could also consider a cash-out refinance to walk away with some cash-in-hand after closing.

You Have Good Credit

When you applied for your original mortgage, your credit score had an impact on qualifying for your loan and the terms and interest rates offered by your broker.

Is your credit better today than it was when you first bought your house? If so, it might be a good time to take a look at new loan options. Better credit now could help you qualify for lower interest rates—and better payment terms for a refinanced mortgage.

Refinance When the Time Is Right

Top mortgage lenders can help you determine if it’s the right time to refinance your mortgage. Your financial situation can be much different now than it was when you signed the original home loan for your house. When interest rates are low, homeowners can benefit from better loan terms and lower monthly mortgage payments!

Let the HomeSoon Lending Team work through the refinance process with you! Our process helps make the mortgage path a quicker journey so you can take advantage of low interest rates now for an excellent refinancing. Learn more about mortgages with your free copy of our resource: the HomeSoon Lending Team Road Map to Mortgages!