When is the Best Time to Refinance?
While interest rate fluctuations are common in the mortgage industry, there are actually several reasons why refinancing sooner rather than later can be a good idea. Here are some of the best times to refinance.
Before Your ARM Rate Fluctuates
If you have an adjustable-rate mortgage (ARM), then it’s a good idea to refinance before your fixed rate period reaches its end — especially if the rates are predicted to rise. Refinancing to another mortgage loan will lock you into lower monthly rates that you are accustomed to paying, thus giving you “peace of mind.”
After Boosting Your Credit Score
An improved credit score allows you to qualify for more types of loans, so shop around for the better mortgage rate. You can save a lot of money each month by refinancing to a less expensive loan. You can also consolidate your other debt to help lower the amount of interest you are paying.
When Cash is Needed for Important Expenses
Regardless of the rate situation, if you need money to pay for a wedding, college, home repairs, etc., a cash out refinance loan may be the perfect loan for you. You will need to have some equity in your home in order to get such a loan and you should at least have decent credit in order to qualify.
Refinance with Butler Mortgage
At Butler Mortgage, we have offered both adjustable rate and fixed rate mortgages with flexible terms to the residents of St. Cloud, Kissimmee, Lake Nona, and other Central Florida areas since 1994. If you are interested in refinancing your mortgage, contact us at 407-931-3800 to request a free consultation.