If your home or current mortgage meets one or more of these three conditions, it’s a good time to consider refinancing.
1. Increased Home Value.
If conditions in your local housing market have increased your home’s value, your equity went up, too. With high equity you could get a new loan on better terms. Or you can convert that equity into cash to use however you like.
2. Interest Rates are Low.
As a general rule, if you can get an interest rate at least half a percent lower than what you’re currently paying, it’s good idea to consider refinancing. If you can get more than a percent, it’s a great idea. A lower rate could get you a shorter term, lower monthly payments, savings over the life of the loan – maybe even all three.
3. Your Current Mortgage is Relatively New.
In the early part of many mortgages, most of the monthly payment goes toward interest. If you can get a new mortgage that applies more of your payments toward principle, that’s good. You’ll build equity faster. It’s like paying money to yourself.
In accordance with Section 326 of the USA PATRIOT Act of 2001, Equity Smart Home Loans is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act.