Interest rates are super low right now so a lot of people are wondering if it’s a good time to refinance their home. Refinancing your mortgage with a lower interest rate can save you money but there are some questions and possible extra fees to consider:
- Does my quote include taxes and insurance?
- When you apply for a loan, the lender will give you an estimate with the breakdown of taxes and related costs.
- How long is the term of the new loan?
- A new loan means new loan terms. That includes a new amortization schedule and loan length. A buyer can choose 10 and up to 30 years.
- How much do I need to bring to closing?
- On average, you can anticipate bringing 2%-3% of the loan amount to refinance
- What are my out-of-pocket costs?
- As you’re reviewing your estimate, ask your lender if there are any other fees associated that aren’t included such as insurance or a property survey.
- Do I have to have any equity?
- Usually, the more equity you have in your home, the easier it is to refinance.
The best place to start is to speak with a lender. We work with a ton of great lenders in Bozeman. Contact us if you’d like us to send you a lender list!