Refinancing Your Mortgage: What You Need to Do
You are past the most difficult part of home ownership – buying a home. After a few years, you feel you are ready for mortgage refinancing. While the process is not as simple as exchanging a few emails and phone calls with your lender, it is not as difficult as you may initially think, either – if you know what to do. The Altius Mortgage Group gives you a guide on the initial steps you need to do to refinance your mortgage in Salt Lake City.
Your Mortgage Refinancing Strategy
First, consider your reason for refinancing your home mortgage. This step will guide you through the entire process.
Lowering amortizations is usually the objective. While you may be tempted to avail of another full-term mortgage of 30 years to bring down your monthly payments, it would take much longer to pay off your loans. You would also need to pay more interest. You need to consider the interest you have already paid, as well as the added interest you would need to pay after refinancing.
The longer you have been paying your loan, the more payments are applied to the principal. If you do not give in to the itch to extend the loan term and get a more preferred interest rate, you can lower your interest payments significantly over the term of the mortgage.
You have to select a suitable term for your mortgage refinancing. It must be a balance between lowering your borrowing costs and an affordable monthly amortization.
Use a Mortgage Refinancing Calculator
After you have established a solid reason for refinancing and you are convinced that the time is right, you are ready to work on the figures. Shop for the most suitable mortgage for you using an online mortgage refinance calculator.
You have to estimate the fees, interest rate and the new loan principal. The calculator will compute your new payment, monthly and lifetime savings, and when you will break even, taking into consideration the refinancing costs. Armed with these figures, you can start shopping for the best rates offered by providers of a refinance mortgage in Salt Lake City.
Make sure that you get the best refinance rates for your home mortgage. Do not get taken in by promises without the proper data.