Today’s society makes it seem like life and debt are two peas in a pod. As you grow and mature into an adult, your responsibilities and needs likewise evolve—which require an amount of money that you may not have at the moment.
This is where debt comes in; you then apply for loans to live a somewhat comfortable life. But is it worth the price?
The Chains of Debt
According to CNBC, the average American has $90,460 in debt. Having this amount looming over your head throughout your daily life for long enough can cause stress, prevent you from saving for the future, and hurt your credit score—ultimately limiting your ability to enjoy life!
The majority of people stack up a lot of debt because of the number of loans they have. Some of the most common types of debt Americans apply for are:
- Credit Cards
- Auto Loans
- Student loans
- Personal Loans
- Mortgage Loans
Easing the Burden
Having debt is normal, but this doesn’t mean you have to put up with the heavy burden. Living a debt-free life can be considered as impossible—but you can make it easier to manage. Jared Lincoln of Mortgage City quoted “There are ways to reduce your debt by reaching out to a credit counseling agency, increasing your income, and refinancing your mortgage.”
Why You Should Refinance Your Mortgage
Your mortgage is most likely one of the biggest contributors to your monthly bills. Depending on the type of loan you have, the payments can be quite costly due to the interest term and rate. If you’re unsure if you should refinance your mortgage, here are a few signs to indicate whether mortgage refinancing makes sense for you:
- Your home has increased in value;
- You want to change your loan term;
- You have high monthly payments;
- You’re not satisfied with the current lender; or
- You wish to secure a lower interest rate.
Things to Remember Before Mortgage Refinancing
Due to low-interest rates, many homeowners choose to refinance their mortgage, but don’t jump on the bandwagon just yet! This is a delicate matter—you need to be sure and do everything correctly to avoid making irreparable and costly mistakes.
Read through our tips below so that you can make a well-informed decision.
Refinance at the Right Time
Having low-interest rates may be an excellent opportunity to refinance, but it doesn’t mean that it’s a good time for you specifically. You need to make a move at the right time! Experts suggest refinancing your mortgage when your current loan has a higher interest rate than others in the market, your credit score has improved, and your home has increased in value.
Explore for More Options
Refinancing takes work! If you want the best rate possible, then don’t limit yourself to just your current lender. Instead of going to just one source, go to different lenders and ask for their mortgage refinance rates as well. You won’t need to reach out to more than a handful of lenders—getting quotes from three companies is enough.
Provide Consistent Information
When you’re talking to different lenders, you need to give them the same information without omitting or adding anything. The lenders will make a loan estimate on the data that you will provide. As such, inaccurate estimates can affect the decision-making process when comparing your options with each other and may lead you to choose the wrong lender.
Refinancing in Royal Oak with Mortgage City
Mortgage refinancing is a great idea for those who wish to lower their monthly payments and reduce their total debt—but you must tread carefully. Follow our tips above so that you can find the right lender that can provide the best mortgage refinance rates. Here’s to happy loaning!
Leave it to Mortgage City for successful mortgage refinancing in Royal Oak! Our business is built on our industry expertise and relationships, which we apply to every loan we service. Rest assured that your loan is being handled with speed, integrity, and the highest standards in customer care. Schedule a FREE consultation today by calling us at (248) 930-8709!
