Have you faced some financial hardships in your life? Are you currently trying to rebuild your credit score and get things back on track financially? The world is a tough place for people who deal with unforeseen circumstances when it comes to money and paying bills, and quite often, this is what leads to folks developing a bad credit score. Continue reading
Mortgage rates are at a big-time low. Therefore, if you haven’t refinanced your home, it’s the perfect time to do so. You could save yourself a whole lot of money in the long run by making that change right now.
Mortgage Rates Are At a Low
Current mortgage rates certainly aren’t the lowest that they have ever been. However, they’re definitely low. CNBC reports that the average 30-year fixed mortgage rate is now 3.73%. That’s lower than anytime in the past three years. With mortgage rates fluctuating dramatically even in the years before that, there’s a good chance that your own home mortgage is priced at a higher rate.
Haven’t Refinanced Your Home? You Might Be Losing $3200 Per Year.
The report indicates that on average, if you refinance your home to these low mortgage rates, you could save $266 per month. That adds up to nearly $3200 per year. Sure, you could do nothing and keep paying that interest to your mortgage loan. But why?
You could take that money and enjoy it. Better yet, you could take that money and make it work for you. Keep paying the same amount to your mortgage each month, but allow that extra money to go towards the principal. After all, you’re used to spending that money each month. If you refinance your home, then you owe less in interest. Paying the same amount you’ve been paying means that you’ll pay off your mortgage that much more quickly.
You’re Not Alone if You Haven’t Refinanced Your Home
According to that report, there are more than 8 million homeowners who haven’t refinanced to take advantage of these great rates. So, if you haven’t refinanced your home mortgage, then you’re certainly not alone. But just because millions of other people are wasting their money doesn’t mean that you should, too. Savvy home owners check regularly to see if refinancing your home makes financial sense. It’s something you should do periodically to make the most of your money.
In particularly, if you have an adjustable rate mortgage and you have not refinanced your home then you’re probably making a mistake. The security of a low fixed rate mortgage simply can’t be underestimated.
But I Just Got My Mortgage Last Year!
Many new homeowners mistakenly think that they have to wait for years before refinancing their home mortgage. That’s not the case at all. Sure, when rates are steady, there’s no reason to refinance. However, when rates change as much as they have lately, it’s worth it refinance whenever the rates are lowest.
If you just got your mortgage in the past year or two then you may not have even thought about refinancing yet. However, if you haven’t refinanced your home while the rates are lowest, then you might miss your best chance.
The report indicates that more than one third of borrowers who just got their home mortgage last year could benefit from refinancing now. That adds up to approximately 1.5 million people who could save money if they refinance their home. Are you one of those borrowers?
Buying your first home is an exciting new chapter in your life, whether you are tackling it as a bachelor (or bachelorette) or with your soon-to-be wife (or husband).
It can be fun daydreaming about designing your new home, but one of the biggest mistakes you can make is putting the cart before the horse. First-time home buyers have the tendency to house hunt first and prepare later. Avoid this mistake, which can cost you time and money, by following these guidelines before buying your first house:
- Check your credit report and score. Don’t even bother reviewing all those online listings until you know whether or not your credit can handle buying a home. Even if your credit can handle it, you want to have a strong enough financial background that you will be able to get a lower interest rate on your loan. It is recommended to review this at least six months before the shopping process so that you can spend some time improving it.
- Know what you need, and prioritize. There is a difference between needs and wants, and when going into a large purchase like this, you may have to make some sacrifices of what you want for what you need. Factors such as the neighborhood, school district and location should all make your checklist. Basing your home buying decision on looks and layout alone may leave you feeling regretful.
- Know what you can afford. Getting your finances in order and knowing what you can afford each month for your new house will be imperative to avoiding future issues. Often, there are hidden costs that are forgotten once those papers are signed such as taxes, insurance, maintenance and so on. It is safer to over-estimate your monthly payments to ensure you are fully financially prepared. Another good home-buying practice is getting an idea of what your down payment will be. This venture is all about being as prepared as possible for all costs.
- Get pre-approved. Once you know your credit score, it’s time to see how much you are able to borrow. Sellers want to know this number, and it’s important for you to realize your spending range as well. Getting pre-qualified for a loan will help to save you time and energy as you begin the process.
- Find the best real estate agent for you. Buying your first home is no joke, so you should spend some time finding the right real estate agent for your needs, budgets and goals. Talk to co-workers, friends and families for referrals to try to find that person you feel like you can already trust. Take some time to shop around for a real estate agent as you shop around for your home. You may want to even look into hiring a realtor to take your search one step further and ensure that credibility.
- Consider educational seminars or consulting. The best way to make sure you are making a wise home-buying decision is to know your stuff. Research, know what you are signing off to and keep yourself educated on the process. You may want to look into one-day seminars offered by real estate companies or even consulting with a mortgage lender to really grasp what to expect.
- Get a home inspection. Last but certainly not least, get that home inspected. You definitely do not want to make such a large purchase without knowing what is beneath those walls. Issues within the home can be fixed prior to you taking over, which will be a huge relief off your shoulders. Just be aware of all the additional expenses in maintenance that would become your responsibility upon ownership.
Don’t be afraid to ask for help as you begin the home buying process. The more you understand, the better the chances are that you will set yourself up for financial success with your new home.