Time has become ripe again for people who wish to refinance their mortgage loans in Utah, and anywhere else in the country. Mortgage rates have dipped lower from 4.16% to 4.14%. As a result, borrowers — particularly, refinancers — have increased by 3.6% in the current week. You can follow in the footsteps of those refinancers and refinance your loan by following these:
Pay Down Debts Faithfully
Of course, even when you wish to refinance, you still have to lock in on a good refinance deal. You can achieve that, however, if you have been paying your bills — particularly, your mortgage — in advance or on time. Your faithful payments contribute to a better credit score, giving you more chances of getting an even lower refinance rate.
You can also refrain from opening or closing any credit account to maintain your current credit score. To reduce your interest rate further, you have to lower your debt-to-income ratio to less than 43% of your annual income. Your constant debt payments will be able to help with this situation.
Consider 15- and 20-Year Mortgages
Another way to get a good refinance deal involves shorter loan terms. When you have a 30-year mortgage, refinancing to another 30-year will only drag out your loan. You can instead consider 15- or 20-year mortgages for your Utah home that have lower rates than 30-year mortgages. Although you will have higher monthly payments, remember that throughout the current year, 15-year mortgages have had around an 80-basis-point difference from 30-year mortgages.
Time Refinance Right
Locking in on a good refinance deal also involves timing. You will want to refinance during times when rates have fallen. At the same time, you will want to refinance if the current rates are significantly lower than the rate of your mortgage. This week appears to be a great time for refinancing as rates have gone lower, and your mortgage rate may be higher than the rates today.
You can head onto a mortgage company soon to get that refinance that you want.