Knowing when to can be tough. Interest rates are running around 5.10-5.15% as of this writing. That’s not bad! This may be a good time to get a home loan. The overall real estate climate is pretty chaotic and ugly right now. Before wasting your time you should check to see if you owe more on your home than it is worth. You can use online resources like Zillow or Truila for values but most of these resources are notorious for being “off”. I recently spoke to a real-estate appraiser. He told me some of these sites over and under value homes by 30-60% in some areas! Therefore, I suggest finding a real estate agent or appraiser to help you get an idea of the value of your home.

Right off the bat: if you are “in the hole” a is probably going to happen. That is, unless you fork over loads of cash to make it an equitable deal for the lender. Think about it…the bank wants a safe deal too, right? If you drop the ball they want to make sure they are ahead of the game.

Next, you’ll want to make sure the loan will truly lower your payments and make good financial sense. Take the time to shop around for a lender. You should get at least three Good Faith Estimates before choosing a lender. Pricing can vary all the way up to 1 percentage point between lenders in a single day! You need to remember that lenders will often give you their best percentages when you make contact with them. Then, Surprise! Are you a higher rate if he offered to apply for the loan.

Relax, this is not Bait and Switch. This fluctuation in the daily work. What does this mean for you? If offered a solid base rate, be sure to stop right then and there. Prices may change quickly and do! We want to make sure that your stay at home fees to cover long enough for your refinancing. This from closing costs by your monthly savings.This will give you an idea of how long it will take to recover your costs.

So, if you research all the items above, have solid equity in your home, and a good credit score…you should be good to go! Remember, when to is really up to you! Do your own research.

Reduce your loan term if possible and make sure the loan is at least 0.5-0.75% lower than your current rate.

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