Finding the Best Deals on Refinancing a Mortgage

Mortgage Loan ContractIf there were only a few things certain this year, then it would be that many people will be looking at mortgage refinances here in Salt Lake City.

Getting your loans refinanced might sound a little off for some people, but the reality is that many people are enjoying an immense amount of savings just by choosing to refinance their mortgages at the right time.

If you are looking for good advice, then here are a few tips you might find handy.

Shorter Terms

I know, just the mention of shorter terms can get a lot of you folks cowering in fear, but read on. If you can afford the extra monthly payments, a shorter refinance time saves you a lot more in the long run. Just to give you an idea, most 30-year terms will carry a national rate of 4.03%, according to Zillow.com.

Meanwhile, choosing a 15-year loan only has a relatively low 3.21% rate. At these levels, you can save over $100,000 in the course of your entire loan! Isn’t that worth the extra bump in monthly payments?

Credit Matters

Improving your credit score sounds easier said than done, but if you can, the effects on your interest and monthly rates could be dramatic. A good score of about 760 to 850 normally gets 3.95% with a monthly payment of $949, which is for a loan of $200,000 with a 30-year lease.

Meanwhile, having a score of 620 will get you 5.54% with $1,141 monthly payments! Can you imagine how much more you will be paying with a low credit score?

Talking about refinancing mortgages and financial matters can all sound a little too alien, especially for someone who has only gotten into loans recently. But with a little bit of research and some good insight, you’ll find no shortage of excellent deals to help you out.