What LIES in Your Debt? Click Here To Find Out

What does the current economic climate have to do with available lower interest rates right now?  Well, our recessive economy needs stimulation to get people spending money in order to let the economic wheels of capitalism do their magic.   With the lowest interest rates in over 40 years, now is the optimal time to consider a low mortgage rate refinance on your home.   Besides helping your individual financial circumstances by lowering your housing costs, you will also do your part to help stimulate the economy with your deal.

Start the process by comparing available interest online to determine what is currently available. Comparison websites make this side-by-side comparison shopping super simple and convenient.  They also offer excellent tools to assist you in making your plans, such as mortgage calculators that allow you to modify various terms of the loan such as interest rates, duration of loan, etc.  Finally, online resources can help educate you to speak the lingo of the mortgage industry so that you will understand what you are getting yourself into.

Clarifying your goals is important too.   Are you looking for the lowest monthly house payment?  Or do you wish to eliminate your debt as quickly as possible?  Can you afford a 15 year vs. a 30 year term probably for a lower interest rate, which will ultimately save you thousands in interest?  Do you wish to purchase points up front?

It’s also important to get your financial status in order.  Do you know what your credit history is?  A solid credit history is needed  to get the very best available rates from any lending institution.   Banks will want to ascertain if lending to you is a safe risk, especially in in view of the fact that American’s have had to pick up the costs for risky lending practices in the past.  They will want to know your monthly income, your debt-to-income ratio, and more.

We have enjoyed low interest rates for quite some time, however, banks are very reluctant to lend to people.  If your home value has depreciated because of depressed housing markets, you might find you currently owe too much on your home, and a bank will not lend to you.   On the other hand, if you have a lot of equity built up in your house, you probably won’t have a problem refinancing your mortgage at a lower rate.

Perform due diligence to see if a low mortgage rate refinance works for you.  It’s advisable to speak with a mortgage professional to see if pursuing a new loan is a good idea in your particular scenario.   Begin, however, by using available online resources to get the ball rolling.

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