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    Choosing to refinance a mortgage loan can be a great move. For one, it can significantly lower your monthly payments for the length of the loan. If you refinance to a shorter term, it can cut down on the amount of interest you pay as well.

    It’s a win-win that means you save both time and money in the long run.

    But like any mortgage loan, a refinance does take some effort and energy to complete. Want to make sure your refi goes smoothly? These tips can help:

    1. Watch rates and act quickly.

    Mortgage rates can be volatile, so if you see rates drop significantly below your current one, don’t hesitate. Get with your lender and start filling out an application right away. Waiting just one week could mean a big difference in your savings.

    1. Boost your credit score first.

    A good credit score can qualify you for an even better rate, so invest some time and energy into boosting yours before applying to refinance a mortgage loan. Work on paying down credit card debts and auto loans, and steer clear of opening any new accounts or lines of credit in the months leading up to your app.

    1. Pay attention to local home values.

    Is there a new addition opening in your neighborhood? Are homes selling like hotcakes once they hit the market? Then home values are likely on the rise. It could be a great time to tap into your home equity with a cash-out refinance that puts money in your pocket or helps you pay off debts or other outstanding balances.

    1. Pay points up front.

    Before you close on your refi, you will have the option to pay points on your loan. Essentially, this lets you prepay interest, lowering your rate for the life of the mortgage. It can save you significantly over the years.

    1. Go shorter term.

    If you’re refinancing from a 30-year mortgage, think about a 15-year or 10-year instead. This can lower that amount of interest you’ll pay over the entire loan term and can save you thousands of dollars in the end.

    Are you wondering “how does a refinance work?” or “when can I refinance my home?” Fret not. Contact Embrace Home Loans today, and we’ll help you hone in on the perfect refi timing for your household.

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