You’ve heard all the talk about how it’s a great time to refinance. While that’s true, it’s only true if certain conditions apply to you. In some situations, it might not make sense for you to refinance. A trusted Idaho mortgage lender will steer you in the right direction to do what makes sense for you, not try to push you into a loan that won’t help your situation just to make a sale. Idaho mortgage rates are incredibly low, so if you’ve got enough equity in your home, refinancing is absolutely a great idea.

If these conditions apply to you, now is probably not the best time to refinance:

·         You purchased your home within the past few years OR

·         You purchased your home when real estate prices were at their peak

·         You made a low down payment when you purchased your home

·         Home prices in your geographic area have flattened or even declined

If you believe you do have some equity in your home, you may be unsure whether refinancing is the right move. Your first step is to contact your trusted Idaho mortgage lender to discuss your situation. You can try to estimate your home’s value before you actually submit a loan application to avoid paying hundreds of dollars in fees for a loan that might not come to fruition.

Generally, an 80% loan to value ratio is a great number to have. That means that the amount of your loan is equal to or less than 80% of the appraised value of your home. If your estimate is near this figure, it might be a good idea to move forward with the process and pay the fees for a formal appraisal of your property.

If your appraisal doesn’t come back where you’d like it to be, you have a couple of options. You can request a second appraisal, and pay for it, or ask what procedures there are to request a closer look at available information. You could also contact your current Idaho mortgage lender and tell them that you’re interested in refinancing to lower your monthly payments. They may be able to offer you a loan modification that could help make your payments more affordable.

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