5 Signs It is Time to Refinance in the Shoals

Thinking that a refinance on your mortgage might be in order, but not sure if it is the right time? Following are some signs that refinancing now could help you to save money as you continue to make payments on your Tri-Cities home.

1. Your neighbors are paying lower rates than you.

Maybe your neighbors came over for a barbecue recently, and one of them let slip their current mortgage rate. When you heard how much lower it was than yours, your jaw dropped.

If the people living around you are all paying significantly less than you, rates probably have dropped since you took out your home loan. It is time to refinance so you are no longer paying more than your neighbors on your mortgage.

2. Your credit score has gone up and/or your DTI ratio has gone down.

If you originally took out your mortgage when your credit score wasn’t so hot, that probably made it hard to qualify for the most competitive interest rates. With a higher credit score today, you may be surprised what you can qualify for.

This applies to your DTI ratio too. If ratio has improved since you took out your loan, a refinance may help you to bring down your mortgage rate.

3. You have decided to stay longer or shorter in the Shoals.

Perhaps when you first moved to our lovely area, you were thinking you would just be staying a few years, and then moving on. So, you chose an adjustable mortgage rate. But if you have decided to put down some roots, now you may prefer a low fixed rate. A refinance can make that happen.

If, on the other hand, you planned originally to stay in the Shoals for a long time but have recently learned you will be moving within a few years, switching to an ARM could save you money.

4. Your income has gone up or down.

Been promoted a few times, and now pulling in a higher salary? If you want to pay your home off early without the pre-payment penalty, a refinance now could make it possible with a shorter loan term.

Had to take a job with a lower income, and now having a hard time making ends meet? That could mean it is time to refinance to a longer term instead for lower monthly payments.

5. You want to renegotiate other mortgage terms.

Maybe your mortgage requires you to pay for PMI, but you would now be eligible for one which doesn’t. Or perhaps there is some other term of your home loan which you would like to change. You might be able to if you refinance.

Let Us Help You Refinance Your Home in the Tri-Cities Now

Refinancing in the Tri-Cities can be a fast, easy, affordable process. If the time is indeed right for you, it could also help you keep a lot of money in your pocket in the future. If you have questions about refinancing or are ready to apply, please call (256) 690-5132 to schedule your consultation.