What do you need? 
There are a handful of things that are generally required to refinance your home, according to Price. These include a steady income, home equity, and a good credit rating. Refinancing is essentially applying for a mortgage all over again, so be prepared for any accompanying costs and be sure you can afford them. 

When is a good time? 
Refinance your home when mortgage interest rates are low. “Refinancing is only sensible if you can get a new loan that is at least two points below your current loan rate,” explains Price, who goes on to warn that when refinancing, you will have to pay all closing costs that go along with getting a new mortgage. “If you can’t afford this, or your new loan rate is not two points below your current, then it may be better to choose a different financing option.” 

Other reasons to refinance include shortening the term of the mortgage to build equity faster, lowering monthly payments or switching from an adjustable rate to a fixed-rate mortgage. 

Additionally, Price suggests that you don’t refinance if you plan on selling your home within five years, as refinancing can cost around 2 percent to 3 percent of the total loan amount. If you aren’t planning to stay in your home for long, the costs you take on to refinance may outweigh your monthly savings. 

“Don’t forget, if you plan on staying in your home for a long time, and mortgage rates are on a downward trend, you can refinance multiple times,” says Price. 

Refinancing can be a great way to save money or speed up the process of equity building. However, talk it over with your lender each time you are thinking of refinancing, to be sure it is financially feasible for you and your family, suggests Price. 

Please contact me with any of your Frederick Maryland real estate or mortgage questions toll Free, 24/7, at 1-800-395-9636 x7 or E-mail me at bill@homes2price.com.

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I am a long time Maryland resident having graduated from Annapolis High School, Johns Hopkins University (BSE) and the University of Maryland. I graduated from University of Maryland with a Masters degree in Engineering. I earned my REALTOR license in 2002 and the Graduate REALTOR Institute designation, GRI.

My focus is to assist my clients achieve their objective in their real estate transaction while saving them time and money. I believe that Real Estate Sales is about helping people.TM My goal is to help people save time and money by assisting them to buy and sell homes in the Maryland Counties of Frederick, Carroll, Howard, Montgomery and Washington. 

Some cities I specialize in are Frederick, New Market, Mt Airy, Middletown, Walkersville, Brunswick, Thurmont, Myersville, Ijamsville, Urbana, and Woodsboro.