It's easy to get caught up in the hype of refinancing. TV, newspaper, and radio ads bombard homeowners with hours and pages of messages regarding home refinancing. Before you jump into the loan with the flashiest ads, you must do extensive research on the market and which loan program would best fit your situation and financial needs.
Assess Your Situation
This is the first step in deciding when and how to refinance. Are you looking to refinance to get a lower monthly payment? If so, you should look not only for a great rate, but a good combination of rates and points that will save you money on your monthly expenses and recoup the closing costs quickly.
Examine Your Debt
If you're looking to pay off debt, then a refinance could be just the trick. With a lower rate and subsequently lower monthly payments, a refinance can give you the wiggle room you need to start paying off high-interest debt. But be smart about your strategy.
Sometimes it is better to pay off several small debts first to bargain with high-interest credit cards or other loans for lower rates. This will save you money over time, as you can't normally pay off large debts in lump sums merely by refinancing. If you are looking to pay off one large debt, though, a refinance may or may not help you. Always do the math first. That's where we can help. Downs Financial, Inc. is a licensed lender with funding resources ample enough to fund highly beneficial loans for our customers with low rates. We can help you decide which loan program is right for you.