3 Hands-down Best Tips to Use for Finding the Best Refinance Rates
Author : Joan Gallardo | Published On : 22 Sep 2021
Did you know a 20-year mortgage refinance hit 2.375% just two days ago? Yes, the rate for this term has been super low since July. If you are looking for a way to refinance, this might be a great time. Locking this rate can pave the way to manage payments. So, you can save big on interest rates. After all, refinancing with the best rates in Houston can minimize the repayment period and get you a reduced interest rate.
Refinancing indeed is helpful. Especially when you are having trouble managing monthly payments, this works well. At the same time, you must be looking forward to landing the best refinance rates Houston.
So, in this article, we discuss the effective tips to get an affordable refinance rate in Houston.
Do Away with Errors on Credit Report
If you want to save money, refinance your loan. But a low rate is possible to get when your credit score looks good. When the score is too low, you are in trouble. Sometimes people with a steady habit of making on-time payments face low credit scores. This seems to be a problem stemming from errors on credit reports.
So, you should watch out for manipulated negative marks, inaccurate personal information, and bad debts.
When there is a negative mark by mistake, the credit score goes down. On the other hand, bad debts are also a problem when unable to pay back. Now, credit reports are supposed to eliminate missed payments after 7 years. If missed payments still appear, you should contact the reporting bureau.
Focus on a Short Mortgage Term
It is better not to extend your loan term. When you have made payments for 6 years in a 30-year fixed loan, choosing a new 30-year fixed mortgage is never the answer. Instead, you can pick a 20-year or 15-year loan term.
Remember, this move will also lower interest rates. Moreover, you can get the best refinance rates Houston even when there are only 10 years left. Refinancing a loan with a shorter loan term relieves from years’ long interest rates.
So, you do not need to pay more and start saving all that money.
Look Around for Rates
Shopping for refinance rates is similar to looking around for mortgage rates. Getting one more quote could potentially help you save thousands of bucks over the life of a loan.
Also, advertised rates are not what you are going to get. The rates may be the result of discount points. But be careful about the discount points – the points are typically a component of mortgage strategy.
In case discount points are a feasible idea for you, consider monthly savings. In addition, calculate how long you are going to stay there. By taking a long look at the annual percentage rate is a must. The APR accumulates the interest rate and other fees.
Are you wondering where to start the loan process? Get in touch with Clearlending for more information.