As a Dallas area resident, you are hopefully paying competitive mortgage rates. But depending on when you took out your mortgage and what your borrower profile looked like at the time, you might be paying a lot more than your neighbors are right now.
If so, you might be wondering whether it is worth it to refinance in Dallas. Could doing so be your key to unlocking a lower mortgage rate?
Refinancing a mortgage has advantages and disadvantages. To figure out whether refinancing makes sense in your situation, you will need to determine whether the potential pros outweigh the potential cons.
Refinancing Carries a Cost
When you refinance your mortgage, there are closing costs. Typically, closing costs for a refinance range between 2% and 5% of your mortgage principal.
So, the question is whether the savings from refinancing will outpace that cost or not.
Refinancing in TX Can Offer Many Potential Benefits
Here are some of the ways in which refinancing your mortgage in Dallas or elsewhere in Texas could save you money:
- You may qualify for a lower interest rate on your mortgage if rates have dropped since you took out your loan or if your borrower profile has improved.
- If you pay for mortgage insurance now and qualify for a loan without a mortgage insurance requirement through refinancing, you could save money every month.
- Has your adjustable mortgage rate been ballooning? Refinancing to a fixed mortgage rate could reduce your payments and keep them low in the future.
- If it is possible to pay off your loan early, refinancing to get rid of prepayment penalties could end up saving you money, especially when you take into account the lower amount of interest you will end up paying in total.
- If you have a number of high interest debts, you might be able to consolidate them into a lower interest mortgage.
- Struggling to pay your other monthly bills and keep up with your mortgage? Refinancing to a longer mortgage term could be what you need to do in order to stay afloat each month and avoid high interest debt.
Try Our Refinance Analysis Tool
In our Resources section, you will find our Refinance Analysis tool.
With this tool, you can enter your zip code and answer a few questions to find out what your new low mortgage rate and payment amount could be if you qualify for a refinance today.
Call Stonebriar Mortgage Find Out How Much Refinancing Could Save You on Your Dallas Mortgage Now
Another way to find out whether you could benefit from a refinance is to come in for a consultation. Our mortgage experts can run the numbers for you and let you know exactly how much you could save over your loan term with a home loan refinance in Dallas or elsewhere in Texas.
If you are ready to start saving, please call us now at (214) 669-3307 to schedule your consultation.