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    What Kind of Refinancing is Right for You?

    Are you thinking about taking advantage of falling mortgage rates and refinance your home in Albuquerque? Even if you refinanced just a year ago, it may be worth looking to see if you can save money by refinancing.

    Yet you should consider more than just the rates if you decide to refinance your home. Here are some points to consider.

    How much will it cost?

    The idea of lowering your monthly payments is obviously a good idea. But there are fees to consider when refinancing. Account for all the fees and negotiate with your lender where you can. Also calculate how long it will take to break even.

    For example, if you pay $3,600 in fees to save $100 a month, it will take 36 months to break even ($3,600 divided by $100 equals 36). So if you plan to stay in your home longer than that period, it will be worth the effort to refinance.

    Consider the terms

    30-year loans may seem the norm, but why not look into a 15-year loan and pay off your home sooner? Or if you currently have an FHA loan, you may be able to get a conventional loan without the mortgage insurance (PMI), which will save you even more money per month. Look at all of your options. You may find the perfect one that you haven’t considered yet.

    How’s the service?

    An important part of the refinancing process is getting your questions answered accurately and in a timely fashion. A loan requires a lot of paperwork, as you no doubt remember. You need to find a company that offers a single, reliable point of contact to answer all of your questions.

    A conventional loan isn’t your only option. 

    If you currently have an FHA loan, you can look into refinancing with what’s called an FHA streamline. This is an easy way to get a lower rate without jumping through all the normal hoops.

    With an FHA streamline loan, the lender doesn’t have to verify your income or credit, and there’s no home appraisal. That means a Streamline Refinance closes faster than other loans and has slightly cheaper closing costs. This type of refi is also available through the VA and USDA.

    Did you get a second opinion?

    Even if you go back to your current mortgage lender for your refinance, shop at least a couple of other lenders to see how interest rates and terms compare. You might believe that going to your existing lender will save you time and hassle. ‘They know us, they’ve already got all of our paperwork,’ you may think. If only that were true. It’s a new loan for them, just like it’s a new loan for any lender. The paperwork will be the same. When lenders know you’re shopping around, they are more likely to compete.

    Make sure to join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

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