Refinancing: a q&a with MortgageBanc
You might have heard from friends or family members who have been through the refinancing process that you can secure a lower interest rate or shorten the term of your loan payments by refinancing your loan. While those results may seem practical, it may not be achievable for everyone. We recently sat down with Ben Chenault of MortgageBanc to learn the ins and outs of the refinancing process.
Q: Is now a good time to refinance?
A: It really depends on how long you plan on being on your home. Rates are still low, but it really depends on a person’s situation to see if it makes sense to refinance. We look at several factors (income, credit history, current value of your home, etc) to determine if it’s a good decision. We still advise a lot of people to leave their loan alone!
Q: How do interest rates affect me?
A: Everyone always wants a low interest rate, but a rate is just one variable to consider when purchasing or refinancing a home.
If rates go down or if you think your interest rate may be higher than the average rate now, go ahead and have someone run a few numbers for you. That way you will know if a refinance is truly a good option for you.
Q: What amount of equity should I have in my home before refinancing?
A: This depends on many variables. You may not need any equity! This depends on what type of loan you have and what type of loan you are trying to get.
Q: Does it cost me anything to refinance?
A: There are closing costs associated with refinancing, however they can be handled in different ways. They can be added to the loan amount, paid out of pocket, or even paid for by your lender using a little higher of an interest rate. We don’t just look at the savings on the interest rate, but also analyze how long it will take you to recoup the cost of the refinance.
Q: How will refinancing affect me in the long run?
A: If it makes sense for you to refinance, it could save you thousands in the long run whether you lower your rate or take cash out to pay off some high interest debts. If you want to refinance your 30-year mortgage into a 15-year mortgage, you will likely incur higher mortgage payments. You’ll want to take this into consideration when budgeting and consider other financial goals, such as buying a new car or life changes like adding children to your family, before moving forward.
Q: How do I know if I’m eligible?
A: You can reach out to the Ben Chenault team to discuss your options using the contact methods below and/or visit their website atwww.benchenault.com to fill out their online application and a team member will reach out to you to discuss your next steps.
Phone: 205-986-4220
Email: bcteam@mortgagebancllc.com
The Ben Chenault team of MortgageBanc is a corporate affiliate of ARC Realty. MortgageBanc, led by Ben Chenault’s team, is consistently one of the top 3 lenders in metro Birmingham and top 1% of lenders nationally! They have been recognized as one of the Best Places to Work in the Birmingham metro on multiple occasions.
