6 Reasons First Time Home Buyers Should Consider Refinancing Their Mortgage
Design by Diana Walton- Houston First Time Home Buyer Specialist
Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.
As a first time home buyer, you may already know that you can refinance your mortgage to get a lower mortgage rate, thereby saving money on your monthly mortgage payments. However, there are other reasons to refinance as well.
Here are 6 additional reasons to consider refinancing your mortgage loan. Please note, there are fees associated with refinancing your mortgage loan. Therefore, as with all financial decisions, please speak with your financial advisor to make sure refinancing will be the right choice for you. That said, let’s begin.
Change mortgage type – You can refinance your adjustable rate mortgage loan and get a fixed rate mortgage loan like an FHA or conventional.
Get Rid of Mortgage Insurance – If you put less than 20 down on your conventional mortgage loan, you can refinance to get rid of the private mortgage insurance you are paying. For FHA loans, as of June 2013, if you put 10% or more down, the mortgage insurance should drop off after 11 years.
If you have a USDA loan, may have to wait until you have 20% equity before you can refinance to remove the monthly guarantee fee.
Divorce – You can refinance to remove your ex-spouse from the mortgage if you owned the home jointly.
Increased Credit Score - Are your credit scores higher now than when you first purchase your home? if they are, you can refinance your mortgage to get a lower rate.
Loan Term Change - Do you have a 30-year mortgage but would like to change it to, let say, a 15-year mortgage? you can, by refinancing your current mortgage.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
