When you first go through the process of getting a home mortgage, you might think you’ll never have to do it again - unless, of course, you move again in the future. But, after a few years, many people consider the idea of refinancing their home through their mortgage company.
Mortgage Refinance Tulsa
Why refinance? There are definitely benefits to the process. While your specific Tulsa mortgage lender can fill you in on how it might benefit you personally, most people choose to refinance their mortgage to get a lower overall payment. Unfortunately, the downside to refinancing is that it can add more years of paying off interest to your loan. This isn’t necessarily a bad thing for some people, it just depends on your individual situation. Refinancing is all about balance, and the right Tulsa mortgage lender can help you find that perfect balance if you’re considering changing the terms of your home loan.
How to Refinance Your Home Mortgage
While refinancing isn’t something that can be done by just signing a piece of paper or two, it’s not necessarily as complicated as most people think. Mortgage lenders deal with refinancing all the time, and thanks to technology, it has become more streamlined than ever. If you’re ready to really take on the refinancing process for your home loan, let’s dive into exactly what you can expect, so you know ahead of time what you’ll need to do.
1. Have the Right Reason: First and foremost, it’s important to understand why you want to refinance. A mortgage company will work with you to meet these goals, but they have to be realistic. It doesn’t make sense to refinance if your payment is going to end up being higher. Your goal should be to shorten the overall length of your loan, while lowering interest rates, as well. Unless it’s a ‘win-win’ situation for you, you may want to rethink refinancing for the time being, and look into it later.
A key tip to this first step is to check out your credit score beforehand. The better your score, the better interest rates you’ll be offered. If you have less than stellar credit, you shouldn’t expect great rates right away, and you may want to wait for your score to be built up with time. However, if your score is better now than it was when you first got a home mortgage, you may be able to get far better rates!
2. Do Your Research: Research and ‘shopping around’ are extremely important when it comes to finding the best refinancing solution. You should know the current value of your home, as well as the estimated value of homes in your neighborhood. There are plenty of home value search tools online that can make this type of research fairly easy. Second, you should begin shopping around for your best interest rates! Again, be sure to do this after you know your credit score, and keep it within a short time period, so your credit score doesn’t change as you look for great interest rates.
3. Paperwork and Hidden Costs: From appraisals, to application fees, to downloading documents and gathering pay stubs, etc., the Tulsa mortgage refinancing process can actually be quite extensive. Working with a great home mortgage lender can ensure you have all the documentation you need to get moving. But, you should also be prepared for different fees to come up. Refinancing isn’t free, and it’s never fun to be ‘surprised’ by hidden costs, so be aware of them ahead of time.
4. Final Costs: Keep in mind that there are also ‘closing costs’ to consider, just as there were when you first took out a mortgage on your home. There are also property taxes to consider. Again, these aren’t necessarily ‘hidden’ fees, but many people tend to forget about them until they find themselves without a lack of cash when it’s time to finalize the refinancing.
Refinancing your home for the right reasons can be extremely beneficial. However, it’s important that you know what those reasons are, and how they can work for you. Don’t be afraid to do extensive research, and gather as much information as possible before you actually take the plunge to refinance. With the right resources, the right knowledge, a bit of extra money saved up, and by working with the right mortgage lender, you can make refinancing work for you.
If you’re able to save money on your home, and lower the overall timeline of your payments, refinancing should absolutely be something you consider. If you do the proper research, and find that it won’t work for you right now, don’t give up. Credit scores and interest rates change all the time. If refinancing is something you’d eventually like to do, be sure to keep tabs on both numbers occasionally, until they fit your specific needs.
For more information on refinancing your mortgage in Tulsa or the rest of Oklahoma, call ZFG Mortgage today at (918) 459-6530