4 Scenarios Where It’s Best to Refinance Your Mortgage

Refinance your mortgage

At $449,900, the median price for houses in Salt Lake City is not exactly one of the most affordable in the country. Regardless of this fact, more and more of the city’s residents choose to invest in real estate as opposed to continue renting. There are, of course, pros and cons to this choice. Pros include the most basic—you finally get to own a house. Cons include the most obvious—you will have to take care of the mortgage, no matter how your financial situation turns out.

Fortunately, the mortgage payment is something you can always fashion into what suits your situation best. For instance, you can refinance your mortgage in Salt Lake City should these four conditions arise:

Interest rates have gone down

Each year, the average homeowner can save $3,000 on mortgage refinancing. This is especially true if interest rates have gone down, which means that you can apply for a mortgage plan that is considerably more cost-efficient than your existing one.

Your credit score has gone up

As soon as you notice that your FICO score has improved—760 or higher, you must begin to consider refinancing your mortgage. This is because this shift in your credit standing will boost your chances of getting a better deal in terms of interest rate.

You need to lower your monthly payment

In extreme cases where you cannot keep up with your monthly payment, refinancing your mortgage is a viable choice. It can give you the option to lengthen your payment duration by decreasing your monthly mortgage responsibility.

There’s a need to convert to a Fixed Rate Mortgage (FRM)

If there’s a reason for you to believe that interest rates are about to shoot up and thus increase your Adjustable Rate Mortgage (ARM), refinancing to an FRM scheme becomes a proactive option.

Mortgage payment need not be unnecessarily cumbersome. If the situation demands, there are ways to make it more manageable, such as by way of refinancing. Learn more about it and see if it’s a good choice for you.