Is Your Current Mortgage Rate Too High?

If you do not know the interest on your mortgage, you are not alone. A survey of homeowners showed that 75% of them did not know their interest rate. Being part of the majority means you could be missing out on an opportunity to save money.

Consequence of ignoring interest rates

When you bought your home, you probably shopped around to find a financing option offering the lowest interest rate. After closing on your new home, you got into the habit of making a monthly mortgage payment and never gave a thought to looking into what was going on with interest rates.

Interest rates have plunged to historic lows, so no matter what the interest rate is on your current mortgage, it is more than what lenders are offering right now. Before deciding to refinance to take advantage of record-low rates, you need more information.

Consider the cost of refinancing

The rate of interest on your current mortgage is only one of the factors to take into consideration when deciding whether to refinance. Finding out that you are paying more than the current rates offered by lenders is only one factor to consider. Another is your credit score.

As a general rule, the lowest available rate requires that you have a high credit score. You also need to take into consideration the costs of refinancing, including application, appraisal and other fees charged by the lender, which could make refinancing less attractive.

Get answers to your refinancing questions

MortgageDepot is a mortgage broker company with loan officers available to answer all of your questions about refinancing. Learn more by visiting MortgageDepot.com.