Mortgage rates are still at all-time lows, which means that it’s a perfect time to consider refinancing your home loans in Pompano Beach. You might even be able to negotiate a lower rate than you already have! Not only can refinancing reduce your monthly payment, but it can also bring down your interest rate. If your home loan is new, then it may be early enough to consider refinancing! If you’re weighing your options, keep reading. In this article, the professionals at Ace Mortgage will walk you through the top four signs it’s a good time to refinance!
Is Your Current Interest Rate Over 4%? Try Financing Your Home Loans in Pompano Beach
Did you know that Freddie Mac’s weekly survey showed that in March of 2020, the 30-year mortgage rate was steady at 3.29%? Did you know that last year, the rate was around 4%? As you can see, it’s better to purchase when there’s a lower interest rate available, and if your current rate is stalling at 4%, then you can save yourself some money by refinancing! Instead of 4%, the 3.29% option will save you some money in the long run, even if it doesn’t seem like much now.
Excellent Credit? Try Refinancing
Not everyone is applicable to refinance, but for those that have a great credit score, it’s an option. The better your credit score, the better your chances are at lowering your interest rate. Now, some individuals don’t know what makes a great credit score and what qualifies as a poor interest rate. If you have over 800, then you’re considered the best of the best. If your credit score lands between 740 and 799, then it’s considered very good. Anything below that could be tricky, but never say never!
Bad Credit? What Can You Do?
Fortunately, there are a few options for those that don’t have excellent credit. First, you can pay off your credit card debt, or you can close out old credit cards that you don’t use anymore. As long as you’re not being charged annual fees, you should be okay. Alternatively, you can check for any issues on your credit report that you don’t recognize, or that you think might be wrong.
Bring on the Equity
If a regular refinancing doesn’t sound enticing, you could try a cash-out refinance. Usually, people cash out their equity when they’re looking to do a big repair, renovation project, or when they’re looking to pay for college, or business ventures. Whatever the case may be, you’ll want to ensure that you can keep up on those payments, should this be the method you choose.
Long-Run Analytics
It’s important to think about the long-term value of your home, and how much you’ll be paying on the property as a result. It can take years to actually see your investment generate a return, so why not try to choose an interest rate that will save you money? If you’re looking to stay in your chosen house for many years to come, you won’t want to miss out on the extra cash.
If you need guidance on refinancing your home loans in Pompano Beach, reach out to the experts at Ace Mortgage Loan Corp. today at 954-256-8860. We’re here when you need assistance!