If you're looking to take out a refinancing loan and are living in Arizona, you could take advantage of the good mortgage rates currently on the table. In December 2008, the average going rates for 30-year FHA refinancing mortgages dipped nearly 20 basis points, landing at a friendly mortgage rate of 5.73%. Compare that with the average mortgage refinance rate of about 6.4% to 6.6% just recently. Since it's a good time to consider having your mortgage refinanced in Arizona, here are some tips on finding the best mortgage rates around:
Consider what matters to you.
Determine the factors that will make a mortgage refinance rate advantageous for you. After all, your goal is to find the one that: a) you can afford and b) give you significant savings over the long term. Once you get a quote, do a few calculations to determine if the mortgage refinance rate is a good deal for you.
Consider mortgage type and shorter payment periods.
If you have the resources, it would be advantageous for you to shorten the life of your loan. If you choose a 15-year payment program, for example, you will get lower mortgage rates than if you took out a loan for a 30-year period loan.
Use your equity.
If you take care of your home now, you will be able to reap the rewards later. Your home's equity will increase as its market value increases. You could help this along by making sure that the home is well cared for. Doing a few maintenance repairs here and there can mean the world of difference in the future.
Furthermore, you could raise your equity and enjoy low mortgage refinance rates later once you've paid up a good amount of your current mortgage balance. This decrease will get you a good deal on your rates.
Your current credit standing could also be very useful in helping you get good mortgage refinance rates in Arizona. If you haven't had any problems with your credit in the past, your lenders are more than inclined to offer you a good deal.
Always compare lenders.
In Arizona, as in everywhere else, make sure you talk to multiple lenders. The idea is to find the best rate possible for your type of loan and credit history. Look for locally advertised mortgages in Arizona from at 3 or 4 different lenders.
Remember that refinancing does cost money over the long term and if you don't get good rates, you could end up paying higher payments each month.
Find out about closing costs.
Getting refinanced means going through the loan process all over again. You will have to pay for fees, certain charges and closing costs. If you're taking out a mortgage refinance loan in Arizona, find out how much you'll be paying because this could significantly burden your finances – at least temporarily.
Got good credit standing? You could take advantage of low advertised rates.
The low, low figures you find advertised on a lender's website or classified ads are meant for borrowers who have above average credit standing. If you fall below this category or have less than the ideal credit score, you might not be offered these borrower-friendly mortgage refinance rates.
If you're borrowing for refinancing in Arizona, check your credit first. The more reliable you are as a payer, the more likely you will be rewarded with great mortgage refinance rates.
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