If life changes have made your mortgage payment unmanageable, you may want to consider a refinance loan Tulsa OK to reduce your monthly mortgage payments. If you’ve never considered refinancing, it’s certainly worth looking into your options before things get out of hand and you run into problems.
Reasons to Refinance
Before you make the decision to refinance, you need to have a reason or a goal you wish to accomplish. Has your adjustable mortgage gone out of control and you want to refinance to lower your monthly mortgage payments? Do you want to make extensive repairs and you have a fair amount of equity in your home? Do you want to refinance to pay off other debts?
Don’t jump on the refinance wagon before you weigh all of your options. While a refinance might lower your interest rate and your monthly payments, it will also extend the terms of your loan; sometimes to 30 years. This is like starting all over again. Is this really what you want to do?
If you have two mortgages – your first mortgage and a home equity mortgage refinancing to create one mortgage payment may be a wise move. Typically you will move into a fixed rated mortgage and a lower combined payment, but again, be careful as this may extend the terms of your loan.
One of the most common reasons why homeowners refinance is because they want to switch from an adjustable rate mortgage. Many homeowners were swept off their feet by the low adjustable rates when they initially purchased their homes, but as the rates rose so did the mortgage payments and sometimes to unbelievable highs making it almost impossible for even the two income families to keep up. In situations like this refinancing and extending your loan out to 30 years may be the only feasible option.
When Is the Best Time to Refinance?
Once you’ve determined that you have legitimate, sensible reasons for refinancing your next question is when is the best time to refinance? When considering refinancing, there is more to consider than just a lower monthly payment. There are closing costs, taxes, insurance, and sometimes association dues and other extras. When weighing your options you have to balance the closing costs with the lower payments and see if it is really saving you money.
For example, if you have to come up with $4,000 in closing fees to save $75-$100 per month, perhaps this is not the right time to refinance. Maybe waiting until later in the year or after you’ve paid your homeowners insurance for the year might be a better time to consider refinancing when you have fewer expenses to worry about.
Where to Turn to Get Answers
If you are unsure about refinancing and you need more information, your local lender can answer any questions you might have. Make an appointment to come in and talk with them about your refinancing options. An experienced lender can help you determine if arefinance loan Tulsa OK to lower your mortgage payments is actually the best move for you at this time.
Refinance Loan Tulsa OK to Reduce Your Mortgage Payments
