Save Big for the Holidays: Refinancing for the New Year
According to a recent Gallup poll, American consumers plan to spend an average of $837 on gifts this holiday season. With additional expenses for holiday travel, food, spirits, clothing, and décor, plenty of people will be looking for ways to save money this season and as the new year dawns.
Did you know that refinancing your home could be one way to save? With the mortgage rates holding steady at some of the lowest levels on record, homeowners certainly still have time to lock in record-low rates and reduce monthly payments.
The mortgage refinance process can feel intimidating, but if the goal is to exchange your current mortgage for a new one that reduces your rate and builds equity faster, diving in sooner than later is a good idea. If starting to save more money this holiday season or next sounds good to you, reach out to The Home Loan Arranger to get started and to avoid common mistakes along the way. Knowledgeable, experienced refinance companies like ours can walk you through what to do.
How it works
Refinancing works much like getting a mortgage to buy a home – only without the stress of house hunting, moving, and a closing deadline. You deserve to work with the best refinance companies and mortgage broker who will take the time to look at your situation from every angle, and that is exactly what the caring professionals at The Home Loan Arranger do.
When it makes sense
Mortgage rates at 2% lower than the current rate on your loan generally means it may be a good time for you to refinance. It may even be a good option if the interest rate difference is only 1% or less. Refinancing through the best refinance companies can also be helpful if you’d like to get rid of mortgage insurance. A reduction of any amount can lower your monthly mortgage payments. Our trusted lenders can help you to calculate your income, budget, loan amount, and interest rate changes to see your options and outcomes.
What else to factor in:
CLOSING COSTS: We’ll help you to figure out the closing costs (such as fees for origination, appraisal, title insurance, and credit reports) to make sure that you will break even in a timely manner and refinancing will be worth your while. Closing costs usually equate to 2 to 6% of the amount you plan to borrow. The break-even point can be calculated by dividing closing costs by the monthly savings with your new payment amount.
CREDIT SCORE: Your credit score can affect the interest rate you receive. If it’s not an optimal number, consider taking steps to improve your credit before refinancing.
HOME VALUE: Home values rose abruptly during the pandemic, which may have increased the equity on your property. You’ll want to find out before starting to refinance, so that you have an accurate estimate of your home’s value to base things on. A low estimate could mean overlooked savings opportunities, while an overly high estimate could mean not getting the mortgage rate you had hoped for. However, some loan products do not take home value into consideration, such as the FHA and VA streamline refinance options, which do not require appraisals.
If you could use some extra cash for the holidays and the new year, reach out to The Home Loan Arranger today so we can discuss how to seize the moment on the historically low interest rates to make your holidays even more wonderful. Loans are flexible and may be customized to whatever term works for you as a homeowner. Your loan may close in as fast as 10 business days.
We can help you to refinance and put your home’s equity to work for you and consolidate debt into lower monthly payments, so you will potentially be saving thousands of dollars on a monthly basis. A new refinance could lead to life-changing money and trim years off the life of your loan. What better gift for the holidays!
The Home Loan Arranger has an A+ rating with the BBB and is one of Denver CO’s premier mortgage lenders. Call us today at 619-400-4968 so we can go through the numbers with you and discuss how much you could save.
