When you have good credit there is nothing that will hold you back from getting the best deal on your home loan. Home refinance is something that you may want to look into if the current market interest rates are lower than the rate that you secured when you purchased your home. Interest rates have changed a lot over the past few years and if you bought your home during a time when the rate was higher than it is now, you could save a lot of money by refinancing now.
Make Your Good Credit Work for You
If you have good credit you may be wondering if you can do any better on your interest rate than you did a few years back. The answer is that, it will not hurt to look! You can inquire about interest rates and home refinance without actually committing to anything, so why not take a look at what is out there and consider how much you can save and if refinancing is something that you should pursue. You may be surprised to see how much you could save.
Many homeowners bought their home when a seven percent interest rate was considered to be very good. That is still very good by some standards, but if you have outstanding credit you may be able to find a lender that is willing to give you a home refinance loan for four or five percent instead. Doesn’t sound like much, but it can be a huge savings over 20 years or so that is left on your mortgage. Wouldn’t you much rather pay four percent interest on the value of your home rather than seven percent? That could mean a huge savings to you, even if you have a $150,000 home!
A lot of people with outstanding credit took advantage of one type of loan when they purchased their home that fit their needs at the time but have found that the loan no longer fits their needs. For instance, many buyers have found that they accepted an adjustable-rate mortgage when they purchased their home but since moving in they decided that they do not want to move again for at least another 10 years. This may not seem like a big deal, but the fact of the matter is that a fixed-rate mortgage can help you save so that you aren’t paying more interest than you have to when your interest adjusts. Home refinance can help you get the stable interest rate that you want when you are staying long term and through this stable interest rate you will pay much less over the course of the loan. Because you have good credit you’ll find that you can still get an outstanding interest rate, the only difference is that it will not change.