If you’re considering refinancing, take our advice. You should know what your plan is before you make the decision to refinance.
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We are excited to have a special guest with us today. Amber Kovarik of Caliber Home Loans is here to talk about some of the things you should know if you’re considering refinancing your home with these current historically low interest rates. She is going to share some of her top tips with us.
The number one thing to consider when refinancing is knowing what the goal of your refinance is. Are you looking to reduce your monthly payment? Reduce your term to accelerate the payoff? Are you looking to do a cash-out refinance to invest in a remodel or rental property? You have a lot of options, so it’s best to know what you want going into the transaction.
Tip number two is to make sure you know the true cost of your refinance. A lot of lenders like to say that they won’t charge you in closing costs, but they will just roll them into your overall mortgage cost instead. Make sure you know what your true closing costs are and how much is being rolled into your loan.
What is the goal of your refinance?
Tip three is to analyze your recoup period. This is a measure of how long it will take for you to recoup your investment. You will take a look at how much you are paying and how much the savings are. Putting those two numbers together will let you know how long it will take you to recoup the cost.
If you have any questions about refinancing, don’t hesitate to give Amber a call or send her an email to Amber.Kovarik@caliberhomeloans.com. If you have any other questions for us, give us a call or send us an email. We look forward to hearing from you.
