When Is the Best Time to Refinance?

A Question that experienced Loan Officers are all too familiar with is refinancing. Often, homeowners come looking to refinance, but only want to only do so when the timing is right. The answer has a few different factors that do come into play.It typically takes 6 months to a year for rates to change dramatically enough to be worth you refinancing. As a rule, the changes in home mortgage rates are going to be minimal. So, if you aren’t getting a reduction of at least.375%, you are wasting your time.When you are looking to refinance, you also need to know how the game works when you meet with a loan officer. If a month or quarter has just started, there is less of a chance that they will concede on interest. However, as the end of the month approaches, these individuals have to meet a quota that their company has put there for them. Try to time you inquiries and application closer to the last half of the month or end of the quarter and you should find that you get the best deal. If you are looking for the quarterly push, try the last two weeks of March, June, September and December, if the banking institution observes a traditional calendar year over a fiscal.

In this scenario December can also be the overall best time of year to refinance. Most banks are looking to end on a high note and Mortgage Loan Officers know they need to have the best quarter of the year to ensure January bonuses. This is crunch time and heading in around the second week of December does work in your favor.”Just know that your credit score is still going to impact this,” Mortgage Brokers warn. “You need to continue to improve your overall credit score and avoid paying your mortgage late. If your credit score is worse than it was when you first financed the loan, the rates aren’t going to get better, no matter what time of year it is.”

However, to take advantage of the best refinance rates, there tips will get you started in the right direction:
Pull a copy of your three major credit reports and dispute any errors.
Pay down your debts and keep accounts open.
Ensure you pay more than the minimum on all your accounts, ensuring you do carry a balance forward.
Have all payments ready to post a full two weeks before their due date.
These simple things can really help to improve your credit score. That in turn helps you to get the best refinance rates, when it is prime time for obtaining them.