Q: The interest rate on the mortgage on my home is 5.9 percent. I was thinking of moving this year, but I would like to see if I can refi first. My credit has been better, but I am working on it. I would like to have a lower payment so I can bank the extra.
A: Mortgage rates are incredibly low. Much lower than your rate. If you’re thinking about refinancing, I can assure you this is the best time to go for it.
But if you’re planning on sticking around awhile, there are thousands of dollars to be saved with a lower mortgage rate. Be forewarned, you still have to have decent credit and a good mortgage payment history to be eligible to refi. The lender will run your credit and there will be closing costs you will have to pay.
At least consult a mortgage lender to see if it’s possible for you. If your credit is not good enough to refi, then it’s not good enough to get a mortgage on a new home, and you’ll need to do some more work on your credit to reach your goals.
Stacey McCarthy is a real estate agent with the McCarthy Group of Keller Williams. Her Real NEastate column appears every Wednesday on NEastPhilly.com. See others here. Read other NEast Philly columns here.