So you want to refinance your mortgage, but you’ve found that the rates have begun rising. Most would tell you that you’ve missed the boat and that it’s too late. But do not be disheartened, as you are not left out to dry just yet. There are myriad ways you can refinance your mortgage even when rates are rising. So, if you’re looking at rising refinance mortgage rates in Knoxville, wondering how you can refinance your mortgage now, here are three helpful tips to lead you in the right direction.
#1. Start early, start fast
The early bird catches the mortgage, in this business. Even if the rates aren’t necessarily shooting through the roof, if they’re going upwards, it’s going to be a while before they come back down. So the best thing for you to do is to start as quick as you can. If you’re considering financing, the best time to do it is now, because that rate is only going to get higher, so strike while the iron is hot.
#2. Check your credit score
However, starting fast may prove you downfall if your credit score isn’t up to snuff. So when you set yourself on refinancing, check your credit score, to see if it’s doing okay. If you haven’t been in any major accidents in the past several months, you should be mostly okay. You should also review your credit report for any errors, as that too can lead to an artificially higher/lower credit score. Other than that, simply making sure your bills get paid and turned in on time, and that you keep a safe distance from your credit limit should help a great deal.
#3. Prepare for the drop
While it is true that a rising mortgage rate is hard to stop, it’s not impossible, and when it drops, it drops like a stone. Which one would think would be good, but there are unforeseen consequences. Specifically, if you aren’t in the proverbial pipeline ready to go with your refinancing by the time the drop happens, suddenly you have to repeat practically the entire process all over again. Luckily, even when you start the refinancing process, you are under no obligation to lock in your rate when you apply, you can just watch the market until you think it’s safe. But be sure to be quick about it anyway.
If you are looking to refinance a mortgage, before rates rise too high, visit a bank in Knoxville to learn more.