Refinancing your mortgage can still be a smart move despite recent interest rate hikes. Here are some common myths debunked to help you understand the process better:
Myth 1: Refinancing is cost-free: No such thing as a free lunch…or a free refi. Refinancing carries closing costs, usually 2-5% of the loan principal, which can be rolled into the new loan.
Myth 2: The interest rate is the most important factor: While important, the loan term also matters. Refinancing to a new 30-year loan resets the payment clock, potentially costing more in the long run. Consider a shorter term for greater savings.
Myth 3: A refinance will affect selling the house: Refinancing replaces the existing mortgage lien without affecting your ability to sell.
Myth 4: You won’t need a credit check: Lenders treat refinancing as a new loan, requiring a credit check to assess your current financial state.
Myth 5: You can only refinance your mortgage once There’s no limit, but frequent refinancing comes with costs. Ensure each refinance makes financial sense and be aware of potential prepayment penalties.
Before refinancing, check your credit score and debt-to-income ratio to qualify for the best rates. Refinancing can be a strategic financial move if done wisely. 🏠🔄💰
#MortgageRefinance #HomeFinance #RealEstateAdvice
Today is a good day to get started, let’s embark on this exciting journey together. Reach out to Ashe County Realty today, and let our experienced team guide you through the real estate market. Whether it’s a cozy cabin in the mountains or a charming home in town, we will help you find the perfect place to call your own.
#RealEstate #ashecountyrealty #ashecounty #ashecountync #mountainlife #blueridgeparkway #homesforsale #landforsale #commercialforsale
www.ashecountyrealty.com