It might seem that obtaining a refinance mortgage is the ideal solution for every situation, provided you can obtain a better interest rate. However, that isn’t always the case, and you should work with an experienced mortgage broker if you are considering refinancing to avoid an unintended outcome. It is common to think about refinancing when you learn that the current mortgage rates are lower than when you purchased your home. After all, who wouldn’t like to lower their mortgage payments? In addition, if you have a variable rate and can convert to a fixed rate that is lower than what your variable rate loan could turn into, it might be a wise choice.
To refinance a mortgage successfully, you need a mortgage broker who can help you get many lenders competing for your mortgage. That won’t happen as successfully if you are having credit issues, such as too much debt or missed payments. You might get approved, but it likely won’t be at the rates you are seeing advertised. The mortgage broker can advise you as to whether your financial situation is strong enough to qualify for a refinance mortgage with better terms than you currently have.
Another reason you might not want to refinance your mortgage is if you don’t like the idea of starting over. If you have already paid several years on your mortgage, you might not want to face 30 years again. However, depending on what improvement you can make in terms, you could go with a shorter term and be in a better situation. Again, it is all a matter of working with a mortgage broker, so you can find out the whole picture.
On the plus side, a refinance mortgage can lower your monthly payments and have better terms over all. On the negative side, you could be paying longer or not qualify. You’ll never know for sure whether it is a good idea to go this route if you don’t reach out to an experienced mortgage broker, so make the call! Call us at the BRM Lending Team to get straight answers about a refinance mortgage and guidance through the process, so you can get the outcome that is best for your situation.