Feb 13, 2018

Posted by in Financial Services | Comments Off on What to Know When Considering a Refinance on Your Home Mortgage Loan

What to Know When Considering a Refinance on Your Home Mortgage Loan

What to Know When Considering a Refinance on Your Home Mortgage Loan

When you make the decision to refinance a home mortgage loan, it’s not likely to be a choice you’ve come to without extensive thought. There are obvious risks as well as apparent rewards, but knowing what you’re doing before you walk into your bank can help reduce the former. If you’re getting ready for a refinance, read on for some tips on how to get the best out of your experience.

Know Your Goals

Why are you refinancing? Do you have a goal in mind? Is it to achieve a better interest rate than your current mortgage offers, or to borrow against your home’s equity to pay off a large, unforeseen expense? Whatever your reasoning, visualize it clearly before you even set foot in a bank.

Research, Research, Research

Get your credit report and score. Know where you stand on your current mortgage and any other outstanding debt. Learn the value of your home, and shop around for competitive rates being offered by various agencies. This is just one more way to “know before you go”.

Know Your Cost

A refinance is likely to trigger fees that you may not know about. From taxes to insurance fees, you will need cash in hand or some other way to cover these fees. Plan accordingly.

Gather Your Paperwork

There’s nothing like being prepared to make you feel like you’re in charge of a situation that can otherwise be intimidating and frightening. Be sure to gather every piece of paperwork you’ll need in advance, including credit scores, current rates, bank account numbers and any scrap of information you’ll need during the process. Having it on hand from the start will lessen stress, later.

In the Knoxville area and looking for more information on how to refinance home mortgage loans? Contact the experts at a community bank near you. Check out our website for everything you need to know about getting started on your refinance journey!

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