It’s an exciting time to refinance your current mortgage because interest rates are historically low today. In most cases, you will save money when you refinance. However, you will want to pay attention to the details during this process. Working with your mortgage banker right away will help to make sure you are getting the best rate, costs and mortgage program that saves you money.

Here are five mortgage refinancing tips to save money.

1. Pay Attention – When it comes to saving money on a refinance, you will do yourself a huge favor by paying attention to all the advertising and hype about interest rates and refinancing. Your mortgage banker will help you sort everything out and provide a complete analysis of your options. As you will see below, some advertising can be confusing and even misleading.
2. Closing Costs and Other Fees – Make sure you understand all the costs and fees associated with your refinance. Some financial institutions will advertise low rates but have higher closing costs and potentially more fees. This is something you will want to ask upfront.
3. Interest Rates – When rates are historically low as they are today, the marketplace is extremely competitive. Lowering your current interest rate will most likely save you money in the short term with lower monthly payments, and save you interest in the long term. Beware though – some financial institutions might be adverting the lowest rate, but it might come with costs. There can be fees for a lower rate, and this might work to your advantage – just be sure it isn’t costing you more than it’s worth.
4. Refinance without Cash Out – Because the environment is so competitive right now with historically low interest rates, it’s actually an ideal time to consider a refinance with cash out if you want to do some home remodeling or debt consolidation. However, know that the interest rates for a refinance with cash out will most likely be higher than a refinance without cash out.
5. Changing Terms – One way to save money over the long term is to refinance into a different mortgage program altogether. For example, when rates are at all-time lows, it’s a good time to consider moving to a 15-year fixed rate from a 30-year fixed rate. Anytime you can shorten the term, you will save years of interest on your loan. It’s also an ideal time to consider a fixed rate loan if you are in an adjustable rate mortgage or a balloon mortgage. Again, the lower interest rates can potentially save you money.

It’s an exciting time to refinance your current mortgage when interest rates are historically low. Saving money with lower monthly payments is a huge benefit. Just remember, you will need to truly pay attention and work with your mortgage banker to make sure you are getting the best rate, costs and mortgage program that saves you money.

Chelsea State Bank can guide you through the entire refinance process and make sure you have the best program with all rates, fees and costs explained to you in clearly and concisely manner so you can make an informed and comfortable decision.

Simply call us at 734.475.4210 or visit us at https://info.chelseastate.bank/refinance to begin. We are here to help.

Loans are subject to credit review and approval.