If you plan to live in your home for several more years, refinancing your current mortgage to take advantage of lower interest rates may be a good option for you. Due to the costs involved in closing a new loan, most homeowners only refinance a maximum of one time while they live in the property. If refinancing makes sense for you based on current interest rates and the number of years you plan to live in the home, an experienced lender such as Village Mortgage can help you fill out your application.
When you apply to refinance your mortgage, you will need to choose a new term. Some homeowners choose the same term as their original mortgage. If you have been in your home several years already, getting a new 30 year loan might reduce your monthly payments significantly. However, because your term will be longer, you’ll be paying more interest than if you refinance into a shorter term. With a 15 year loan, you’ll pay off your mortgage faster but your payments may be slightly higher. This may be a good choice if you can afford a higher payment want to increase your equity faster.
The Refinance Mortgage Rates Avon CT lenders offer may vary slightly so many homeowners talk to a few different lenders before they apply for a loan. Because you’ll have to pay closing costs, choosing the lender with the lowest rates can make a big difference in the amount of time it takes you to recoup your costs. Most lender will gladly give you their rates over the phone. Before you apply, be sure to check your credit report to be sure you’ll qualify for the best Refinance Mortgage Rates Avon CT lenders have to offer.
The lender you choose should explain the benefits of a new loan and help you determine how long it will take for you to recover your costs. Many people save over $100 on their monthly mortgage payments after they refinance. However, with closing costs averaging over $3,000, it can take years to recoup the costs and make the new mortgage worth your money.
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