Thinking About Refinancing? Now’s the Time!

With mortgage interest rates near all-time record lows, many homeowners are considering refinancing. If you haven’t been, you should be. Here are a few quick tips:

Check with your ALCOVA Loan Officer for the best rate. Most rate quotes are based on when your loan closes. Should you require a longer period of time in which to lock in your rate, you may pay a slightly higher rate. Be sure to ask about the rate lock time period. Naturally, you’ll want to make sure you are able to close the loan within the prescribed time. With many homeowners potentially deciding to refinance, lenders will be very busy.

Don’t forget about your second mortgage or home equity line of credit. Unless you plan to pay it off completely, remember the second mortgagee must agree with the terms and conditions of your new first mortgage in order to close the refinance loan.

Gather your loan documentation information. Federal regulations require mortgage lenders to verify income and employment, assets and liabilities and update your credit score. So, even if you’re refinancing with the same mortgage lender with whom you have your current mortgage, be prepared to go through the process to update your financial information.

Consider loan closing costs. Just to be on the safe side, discuss your refinancing plans with your Loan Officer. Determine with them when your “breakeven point” will be relative to the closing costs you’ll be required to pay to refinance. Depending on your total costs, the interest savings of refinancing at a lower rate may take 2-3 years before you’ll recoup them. That’s important if you think you may want to sell your home within that time period.

If we at ALCOVA Mortgage can assist you with any refinancing questions or other mortgage needs, please call us. We’re ready to help.


ALCOVA Mortgage, LLC

855.GO.ALCOVA (855.462.5268)
ALCOVA Mortgage.LLC | NMLS ID# 40508
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