According to Freddie Mac, 30 year fixed rate mortgages are at the lowest they’ve been in over 60 years. The rate now falls at just a little bit over 4% and that rate has current homeowners thinking that it might be time to refinance their mortgage. But before you jump right into a refinance deal, here are some tips to help you get the best Refinance Mortgage Tucson has to offer.
When most people think about refinancing their mortgage, they typically look at the rate first. It’s important to shop around and look at what different lenders are offering you. The rate could vary by 1% and it may not seem that much to you, but on a $250,000 mortgage, that 1% could mean the difference of $140 a month. Over the course of a year that could add up to $1,680 and over the life of the loan, it could total $50,400.
While the rate difference is important, it should be the only factor homeowners look at. Ask to see a good faith estimate so you can see what other costs are involved. Some lenders will offer a great rate, but their closing costs and fees are significantly higher and their service might not be as good as a different lender.
One thing to really keep in mind is that while the rates are really low right now, a refinance might not be the best financial move for you. Getting a new loan could mean thousands of dollars in closing costs. To help you figure out if this is the right decision, think about how much longer you plan on staying in the house and what your break even point is. Depending on how much the closing costs and fees are, you might be taking a step backwards and it may take you longer to recoup those costs.
Finally, be very cautious with deals that boast no closing fees. Instead of charging closing fees, some lenders will either charge a higher rate or building up front charges to make up the cost. Be sure to ask for a the lender for all the different options available.
Follow these tips and you should be able to find the best Refinance Mortgage Tucson has to offer.
