Refinance Home Loan Rates
You’ve got a home with some equity, and are wondering about refinance home loan rates. You could use the extra cash, sure, but you also want the best deal you can get. Should you wait and see if the home loan refinance rates go lower…or are they on the rise again?
Should You Refinance Your Home?
This is the first question that you should be asking yourself, and that is should you be refinancing your mortgage? It can make sense if you’re just wanting a lower interest rate, or you can get a good drop in your monthly payment. But are you also planning on using some of the equity in your home to get extra money?
If you want extra money with the refinance, would the money be used to pay off credit cards or reduce other debt? Do you plan to use the money to renovate the house? Or do you want to plan a vacation of a lifetime with the extra cash? These days it pays to be extra-careful when it comes to a home mortgage.
What Kind of Home Mortgage?
Once you’ve made the decision to refinance your house, you’ve next got to decide upon the type of mortgage you want. After the housing bubble burst a few years back, fewer people are seeking a variable rate mortgage and are moving towards a fixed rate loan.
The next item to consider is how long a time period do you want for the refinance? The two most popular numbers are 15 years and 30 years; which you choose will depend on your personal circumstances. However, 15 year mortgages tend to have better refinance home loan rates than do 30 year mortgages.
Refinance Home Loan Rates
You’ve decided on a home refinance, and are debating between a 15 year term and 30 years. Your credit score is reasonably good, so where do you start looking for home loan rate information?
The internet is the first place to search, to get a general idea of home loan refinance rates. Keep in mind the advertised low rates generally apply to someone who has an excellent credit score, but it does give you a basis for comparison.
If you’ve had a good relationship with your current lender, you might want to ask them what refinance mortgage rate they can give you. Many times when they know you are “shopping around”, they will offer you a rate incentive to stay with them.
Refinance mortgage rates have dropped a great deal in the last couple of years, but there is no guarantee that the rates will remain low. If you’re serious about seeking to borrow the money, refinance home loan rates may not get any better.