5 Tips About Mortgages and Refinancing In 2013Jan 21 2013
If you’ve been waiting for the best time to refinance or to buy a home, 2013 is a great time to finally act. With good credit, persistence and some shopping skills, you can snag a phenomenal deal this year. Here are the 5 mortgage tips from Bankrate, Inc. to help you with your mortgage decisions in 2013.
1. Stop Procrastinating and Refinance
If you haven’t refinanced lately, you’re probably paying a higher interest rate on your mortgage than you should. Take advantage of the record-low mortgage rates while you can, as they will begin to gradually increase into 2014.
2. Buyers, Get Moving
With rates near the bottom and home prices on the rise, it’s still a perfect time to buy a house. If you can afford a home and qualify for a mortgage, this may be your last chance to take advantage of the market and own a home for less.
3. Compare FHA vs. Conventional Loans
While many homebuyers opt for a FHA mortgage due to the low down payment, costly FHA fees can increase your loan in 2013. If you can afford the slightly higher down payment, consider getting a conventional loan instead of a FHA.
4. Ensure That Your Credit Is Golden
Credit standards remain tights. As new mortgage rules are unveiled in 2013, the standards are no expected to loosen. If you plan to get a mortgage anytime soon, you must treat your credit as one of your most valuable assets. You’ll need a credit of at least 720 to get the best rate and the lower your score, the harder it will become to get approved.
5. Want To Pay Off Your Mortgage Earlier?
If you dream of being mortgage-free, the low-rate environment may be a good opportunity to refinance your 30-year mortgage into a 15- or 20-year loan. But make sure you can really afford the slightly higher payments on the shorter loan.