Buying a home is a great thing, but what happens after the big purchase? Now that the walls are painted and the bedrooms are all in place, it’s not unusual for homeowners to think about refinancing. For this article, I spoke to Mortgage Loan Officer Denise M. Flynn from PNC Bank. Flynn was able to discuss with me some of the key things a homeowner needs to know when refinancing on their home.
Commonly, people receive phone calls or letters in the mail about refinancing. It may sound like a good idea, but it all depends on the your financial situation. If you want to lower your mortgage payment or to shorten the length of a mortgage, talk to a mortgage loan officer first. Prior to taking refinancing into serious consideration, it’s good to wait at least a year or two to build equity. When enough equity is built in the escrow account, it’s possible you won’t have to deal with closing costs. If you have to pay closing costs out of pocket, there are programs for homeowners who want to refinance. Therefore talking to a mortgage loan officer is a must. Go into a bank (preferably your current bank) and ask for a mortgage check up. Bring in your mortgage bill and see what a mortgage loan officer can do for you. It’s important to also maintain a good credit score, and credit history prior to refinancing. But just in case you were curious, refinancing it doesn’t hurt or help your credit, it just benefits the homeowner.
Life happens and financial situations occur all the time, and if there’s anyway money can be saved look into refinancing. It’s also okay to refinance more than once. It’s always good to free up some money when you can. If you have an adjustable interest rate when you purchased you home, you can turn it into a fixed interest rate. How awesome is that? For additional information listed below is a link you can copy and paste into the web browser that also explains what how refinancing works.
For more information about refinancing your home, visit: https://www.pnc.com/homehq/en/home/refinance-my-home/refinancing-demystified.html.