It’s never too early to start planning for the future. If you’re thinking about refinancing your home in 2023, it’s time to make a few resolutions now. With the right strategies, you can save yourself a lot of money and hassle by the time the new year rolls around. One of the best ways to do this is by refinancing your home.
Refinancing your mortgage can be a great way to save money over the life of your loan. It can also help you pay off your home earlier or even give you access to additional funds for home improvements, debt consolidation, or other expenses. But the process of refinancing can be complicated and confusing if you don’t go in with a plan. That’s why it’s important to have a checklist of documents that will make the process smoother and easier.
10 Resolutions for Refinancing a Home in 2023
Review Your Finances
Before you jump into the world of refinancing, take a few moments to review your finances. Take stock of how much equity you have in your home, what kind of credit score you have, and what kinds of debts or other obligations you may be dealing with. All these factors will play an important role in determining whether or not refinancing is right for you.
Shop Around for Rates
With so many lenders offering competitive rates, it’s important to shop around and compare different offers before committing to any one lender. Different lenders offer different rates depending on factors like credit score, loan amount, and more. Make sure to look at both fixed-rate and adjustable-rate mortgages and consider all of the fees associated with each one. Get started by calculating you refinance amount using our calculator.
Learn About Different Types Of Refinancing Options
If you’re looking to take advantage of some financial opportunities, like a dream vacation home or a new car, tapping into the equity in your home may be for you. Refinancing is an effective solution that can help secure better deals on hundreds of available options — but it’s important to have an experienced mortgage expert by your side who will ensure that all details are handled properly and professionally!
Explore Refinancing Programs
The Canadian government offers several programs designed specifically for homeowners looking to refinance their home loans; this includes loans like the Canada Mortgage and Housing Corporation’s (CMHC) and Insured Mortgage Purchase Program (IMPP). Researching these options can help make the process easier and more affordable in some cases too!
Consider Private Mortgage Insurance (PMI)
Private mortgage insurance is typically required when taking out a loan that has less than 20% equity in it; if this applies to you, be sure that PMI is factored into the equation when deciding whether or not refinancing makes sense financially speaking. Not only does PMI add monthly costs, but it also affects how much house you can afford when shopping for a new loan.
Getting pre-approved is always recommended when shopping for any kind of loan because it helps streamline the process once an offer has been accepted. This way, once an offer has been accepted, borrowers won’t have as much paperwork or hassle associated with securing the loan. It also helps borrowers lock in an interest rate, which can be beneficial depending on market conditions at the time when the loan is ready to be closed.
Establish Credit History
If you don’t already have an established credit history due to not having a long credit history or no credit score at all, now is a great time to start building up some creditworthiness by getting a few lines of credit and making regular payments on them each month. Having good credit can go a long way toward helping you get approved for better loan terms when refinancing a home.
Strategize With A Plan In Mind
Devise an action plan which outlines both short-term goals (i.e., reducing monthly payments by 10%) as well as longer-term ones (i.e., increasing equity position by 5%). Doing this will allow you to stay focused on achieving those goals throughout the entire duration of the refinance process, allowing for greater success overall when it comes time to finalize everything at closing time.
Keep Records Of Everything
Once everything is finalized at closing time, keep records of everything involved in case there are any questions later on down the line regarding who was responsible for what concerning financing agreements made between parties involved in order to protect yourself from any potential legal issues that may arise due to lack of documentation from either side(s).
Get Professional Advice
Last but not least, always remember that getting professional advice from someone who knows what they’re doing is invaluable when trying something as complicated as refinancing a home. With so many factors to consider, make sure you consult a qualified mortgage professional.
Refinancing your home in 2023 could be an excellent way to save money on interest payments or pay off your house more quickly. If done correctly, it could even result in some extra cash in hand at closing. Put together a plan now so that when it comes time to take advantage of potentially lower interest rates or better terms in January 2023, everything falls into place perfectly!
Our experts at Ingram Mortgage Group can help. Contact us today to get started on refinancing your home this year!