The stress and anxiety caused by debt can feel insurmountable, especially during a global pandemic. With bills and mortgage payments mounting, you may be feeling hopeless. However, by refinancing your mortgage to consolidate debt you can update your loan term to lower your interest rate and reduce your monthly payments. However, there are costs associated with refinancing you should weigh to determine if it is the right solution for you. The experienced loan officers at BrightPath will work to lower your refinancing costs and provide the relief you need so you can refinance your mortgage to consolidate debt quickly.
Factors to Consider When Refinancing Your Mortgage to Consolidate Debt
The costs of refinancing your mortgage to consolidate debt will be determined by your individual circumstances like your mortgage lender, location, credit score, mortgage type, loan size, mortgage term and current home equity. Generally, the refinancing costs will range from two to six percent of your total loan amount.
When deciding if refinancing your mortgage to consolidate debt is ideal for you, compare the fees and closing costs with the potential savings the refinance can garner you over time. Also, think about the length of time you plan to live in your home. Refinancing is a better option if you intend to stay in your home for a longer period because it allows you to renegotiate your terms and lower your interest rate. It may not be worth the additional fees if you plan to relocate.
Lowering Your Costs When Refinancing Your Mortgage
It is crucial to consider the fees you must pay when refinancing your mortgage to consolidate debt, including home appraisal and inspection, application, origination, flood certification, recording, reconveyance, credit report, title search, and insurance fees. While these costs do add up, there are strategies you can utilize to lower these payments.
- Comparison shop your lenders. The best way to know if you are getting an excellent rate is to apply for loans with multiple lenders. Reviewing the refinancing costs of up to five lenders can help you determine who will offer you a better deal.
- Negotiate your fees. Your lender may be open to waiving or lowering certain fees associated with your refinance. It never hurts to ask for cost reductions.
- Build your creditworthiness. The better your credit score, the more likely you are to leverage a better refinance deal with your lender. Work to reduce your debt, make timely bill payments and correct errors on your credit report to become a more desirable candidate.
- Explore your options with a no closing cost refinance. With this type of refinancing, you do not have to pay all of the fees immediately. However, the closing costs you do not cover will be incorporated into your new mortgage payment or you will be charged a higher interest rate to make up the difference. So, you will need to review your finances to determine if this will save you money.
The Experts at BrightPath Can Help You Refinance Your Mortgage to Consolidate Debt
If you feel like you are drowning in debt, the experienced loan officers at BrightPath will use their compassion, professionalism and knowledge to help you refinance your mortgage to consolidate debt. Contact us today to schedule a free consultation.
When you work with BrightPath, you can begin living the life you deserve