If you think that your present circumstances may help you qualify for a lower rate on your mortgage, you may want to consider refinancing to lower your payments. Refinancing may allow homeowners to replace their existing mortgage with a new one to help lower monthly payments.

Use our helpful calculator to estimate the potential long term savings, do a breakeven analysis and more…

These financial calculators are licensed for use from TimeValue Software.

Things to Consider before you Refinance to Lower Payments

While many homeowners refinance to lower their monthly payments, some also refinance to get cash, consolidate debt and more. The right loan usually depends on your current situation and your short and long-term goals. Before you refinance your loan, you may want to plan for future needs as well.

5 Tips to Help You Shop for a Refinance Loan

• 1. Have a clear objective for refinancing
  Do you want to:
  • Lower your monthly payment?
  • Change your loan rate or loan type?
  • Consolidate higher-interest debt or get cash?
  Having a clear objective can help when comparing loans.

• 2. Review your whole financial picture, not just the refinance loan
  Look at current and near future financial needs before selecting a loan. You may want to ask yourself:
  • Do I have enough available home equity to pay off other debts and still lower my overall monthly payments?
  • Are there any upcoming home repairs or renovations that I’ll need to finance?
  Tapping your available equity with a refinance loan may be a great way to address these needs.

• 3. Examine your credit report
  • Check your credit report, and that of any co-borrowers, for mistakes and outdated information.
  • Find out your FICO score. Your FICO score is based on your past payment history and credit report. Higher scores usually mean lower interest rates.

• 4. Research your refinance loan options
  • Know what you want before you shop for a loan. It will make comparisons easier and also assist the mortgage professional in getting you the loan you want.

• 5. Comparison Shop
  • Once you know what you want and have a clear picture of your finances, it will make it easier for you to comparison shop for the loan that’s best for you.