Homeowners in Ogden sometimes choose to refinance their mortgage to help them save some cash. Whether your goal is to lower your interest rate so you can save more in the long run or to make smaller monthly payments, so you have more breathing room in your monthly budget, refinancing your mortgage through Wasatch Peaks Credit Union can help you do that.
And sometimes, these goals aren’t exclusive. If you do your research well, you can have the best of both worlds and obtain the lowest refinance rate possible, while also saving more in the long run.
Understand your loan.
Even before you start looking for lenders who are willing to refinance your loan, you will have to crunch some numbers first. Often, you can reduce your loan’s rate by agreeing to a shorter lifespan and higher monthly payments. But if you’re looking to cut down on your monthly payments, your interest rate will rise.
Get your credit in shape.
Most lenders are happy to work with you if you have a credit score higher than 620, but you’ll need a score of 740 or more if you want to get the lowest rates. You will also do well by driving down your debt-to-income ratio before you plan to get refinancing. Pay all your bills on time and avoid buying other major purchases that can hurt your credit score.
Homeowners have plenty of options. Do not settle for the first lender you find. You have access to big banks, small banks, credit unions, and even home builders who are competing with one another to give you the lowest rates. And when you sign that loan with your chosen lender, make sure they are someone you can trust.
Consider other costs.
Refinancing comes with a lot of closing costs, ranging from application fees to title searches and attorney’s fees. You can rack up a few thousand dollars in closing costs alone. Paying for these expenses upfront can help you save the most amount in the long run, but if you don’t want to cough up the cash now, consider a “zero closing cost” mortgage that will slightly increase your interest rate.
As with all financial products, a mortgage refinance requires that you do the research and take the time to weigh your numerous options. If you are clear about why you want a refinance, it won’t be hard for you to find a lender who can meet your needs.