The timing of a home purchase or mortgage refinancing can have significant financial implications. Whenever possible, you should aim to act at a time when you can benefit the most.
Here are excellent opportunities to buy or refinance a home:
When mortgage interest rates have gone down
Mortgage rates influence the size of a lender’s monthly mortgage payments. They also have a significant impact on the overall cost of the home in question. A fall in interest rates can lead to savings in monthly repayments and ultimate value of your house.
Qualify for a larger mortgage
Lower mortgage interest rates may also help you qualify for a bigger loan. That can happen because your lender has to consider the monthly payment you can afford. The lower the interest rate you get, the lower your expected monthly payment.
Accordingly, explains Community Lending Group, if rates remain low and you get a lender with the lowest mortgage rates in Utah, you could buy the house you wanted but could not afford.
Lower monthly payments
And if you bought your home at a time when mortgage interest rates were high, a fall in the rates may make it the right time to refinance. Your new mortgage will have more affordable monthly payments.
When your credit score has improved
Mortgage rates can vary significantly based on credit scores. A mediocre credit score may lead to disqualification or a high monthly mortgage payment. Conversely, an excellent credit score will help you qualify for the best interest rates.
Accordingly, if your score has gone up, it may be an ideal time to buy or refinance.
Ultimately, the best time to purchase a home or refinance your mortgage depends on your personal circumstance and goals. The best time to act is when your financial profile and goals intersect with the right home in the right neighborhood.