Now more than ever before in my career, I am seeing low-interest rates.
This could be a giant opportunity for you. You just need to know what you’re doing and how to navigate these interest rates in the current economic times.
My rule of thumb is that if you can reduce your interest rate by 1%-2% or more over a long period of time, then it’s worth considering a refinance today. This is possible because you can get a 30-year fixed-rate mortgage for anywhere from 2.5%-3% right now.
Before you ever meet with a banker, though, do these 4 things: run the numbers, look your best as a borrower, shop around, and make sure you have fall-back money in savings.
We must know our numbers before we sign on the dotted lines. So, go to a mortgage broker and ask them to run the numbers of the top banks. Have them find out what their interest rates are for a 30-year and 15-year fixed-rate. Then, run the rate differences.
When you see the banker, come in organized by having at least 2 years of tax returns, having your current assets and liabilities statement, and knowing your current credit score (hopefully 700 or above).
This is an opportunity to right your past wrongs, change your bad habits, and keep the spread of your money. Not only will you get a low-interest rate now, but the value of your property will keep increasing over time.
If you want to learn more about refinancing, check out Episode 030: Taking Control Of Your Money, Refinancing, And Interest Rates.