If you are currently a homeowner and have a mortgage in Bellevue, then you could qualify for a mortgage refinance. Refinancing your mortgage has many benefits so to help you get started, the Nicole Vaivadas Team has listed how exactly the process works and the benefits of refinancing.
What Is Mortgage Refinancing?
Mortgage refinancing is where you apply for an entirely new loan to pay off and replace your existing mortgage. Just like you needed a good credit score to apply for your first home loan, you will also need a good score if you wish to qualify for a mortgage refinance. Your mortgage lender in Bellevue will want to review your finances and see that you are capable of paying off your new mortgage.
Also, if you wish to refinance, your debt-to-income ratio should be around 43%. This means it is important to have a stable income. Most lenders prefer borrowers to be with their current employer for around two years, so try avoiding changing jobs until your loan has officially been refinanced.
Benefits Of Mortgage Refinancing
Most borrowers wish to refinance their current mortgage so they can have lower interest rates. If you applied for a mortgage where the interest rates were significantly higher than they are now, you may want to consider refinancing.
Since rates are currently low, you could refinance your mortgage and receive cheaper monthly payments. Having a lower interest rate also means you could potentially pay your loan off quicker.
Another benefit to refinancing your mortgage is that you could shorten or lengthen your amortization period. If you currently have a 30-year mortgage but realize you would rather have a 15-year mortgage, you could apply for a mortgage refinance to change your current terms. Or if you would like to extend your amortization period, then refinancing can also help you do that.
If you would like to receive more information about refinancing your mortgage or if you are interested in starting an application for one, please contact your mortgage lender in Bellevue at 425-818-5880.