When should you refinance your home? – Ali Farahpour

Most homeowners think that refinancing one’s home to allow the mortgage interest rate to decrease is a great idea, but refinancing one’s home will only work at the right time. Refinancing of homes is often heavily contingent on the right timing.

People who opt to refinance their mortgage and move to a lesser rate actually pay an overlooked price – the closing costs. If a homeowner keeps refinancing his or her home, there is a trail of closing costs that one must not miss calculating. 

Mortgage refinancing is a hit or miss venture, depending on the timing of the change. It can either work, or not, in the homeowner’s favor. This means that there are times when it is best to stay with the current mortgage rate.

Recognizing the perfect timing to refinance one’s home takes preparation and planning. It is important to first learn what the main goal for refinancing is. Having a clear goal on in mind will allow for the successful restructuring of one’s debt. Refinancing a mortgage will lead to a decrease in interest rates of the loan, as well as change the loan term. Most people opt to refinance their home so they can cut down the interest rates of the mortgage. There are homeowners, however, who aim to reduce their monthly payment by extending their loan another 30 years.

When a goal is clear, it is important to carefully calculate the circumstances and the timing of getting a different mortgage. It is wise to stay at a house for a little longer to make the most out of refinancing. It was reported that the average closing costs on a loan amounting to $200,000 would be around $3,118 as identified by the closing cost survey that was done. This amount does not include taxes, insurance, and other dues such as homeowner association payments.

Learning where one stands in their current mortgage is the best way to tell if refinancing the mortgage will work best. One’s credit score must also be considered as this will affect the kind of mortgage one will get after the home is refinanced. There are also possible prepayment penalties that one may have, it is important to have this cleared before moving on with refinancing a home.

In order to assure smooth legal transactions when refinancing one’s home, FNC Title Services LLC can provide their services to assure that the client will be well guided in their refinancing transactions.


About alifarahpour

Ali Farahpour is the founder and president of FNC Title Services, LLC. Farahpour has nearly 20 years of experience in residential and commercial real estate settlements, with a focus on serving senior citizens through home equity conversion mortgage (“HECM”) transactions. He is a resident title insurance producer for Maryland and in addition holds several individual title insurance licenses throughout the country. More recently, Mr. Farahpour focused his skills on serving the reverse mortgage industry. In 2007 he founded FNC Title Services, LLC, a multi-state title insurance agency that specializes in closing HECM transactions. As a means to better serve his clients, Mr. Farahpour developed on-line systems that allow FNC clients to generate fees, GFEs and open and track title orders. Clients are able to close loans throughout the nation and are guided by specific FNC divisions dedicated to reverse mortgages. Mr. Farahpour runs FNC Title Services, LLC from its corporate headquarters in Rockville, Maryland and lives with his family in Bethesda, Maryland. You can read more about FNC at www.fnctitle.com
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