When should you refinance a mortgage?
Many times, borrowers don’t confirm their mortgage rates. As a result, they end up paying thousands of extra dollars every year due to higher interest rates.
If you’ve already got a mortgage but your rate is really high then you are paying extra for no reason at all. You’re stuck with the mortgage for a long time, therefore better you should switch lender and opt for refinancing.
If you want to opt for refinancing, find a lower interest rate mortgage that suits your need. However, to apply for the loan again, you need to be eligible for it. You may also need professional help for refinancing if you have a bad credit score. Thus, before applying for a loan, you should follow the credit repair process. Furthermore, you need financial and identification documents, after your new lender accepts your application.
When you will refinance, your new lender will handle the changeover. By refinancing to a cheaper rate, you can save yourself a chunk of money.