Homeowners who wish to save money through mortgage refinancing may find relief from recent data of Bankrate showing that the average interest for 30-year fixed-rate mortgages now close to 4% again.
Lower interest rates: The unexpected gift to borrowers
According to Bankrate, the sharp drop suggests nearly 6 million people can benefit through home refinancing at a lower rate.
Black Knight reported that the number of potential candidates for refinancing amid lower interest rates is 2 million more than last month. On average, a homeowner can save $271 per month — the combined total savings amount to $1.6 billion.
Bankrate’s senior economic analyst Mark Hamrick noted that the sharp drop came as an unexpected gift to borrowers as the market anticipated a rise.
How to apply for a mortgage refinancing?
Before you get yourself excited about applying for refinancing, keep in mind that there are things that lenders will check.
New Jersey-based Family First Funding LLC’s Executive Vice President, Melissa Cohn said that applicants need to check their FICO score as well as balance sheet first. Specifically, lenders will evaluate your employment history and debt-to-income ratio. They will reward you with better rates, should they find you at low risk.
To get the best rates, borrowers’ target credit score should be above 740, and their loan-to-value ratio must be 75% or less.
Each bank has its income requirement for every loan application. Self-employed borrowers may need to show additional proof of income to satisfy loan prerequisites.
Banks also reward borrowers who have shown improvement in their credit score since obtaining their original mortgage. Generally, the loan interest rate drops around 0.125% for every 20-point rise in credit scores
Individuals who are not yet financially ready but are still wishing to get a better rate in the future may need to create a financial game plan that could put them in a better situation. That includes saving money for an emergency fund and paying down debt.
Orlando: A Magical and Fun-Filled City
Orlando, home to the famous Walt Disney World and other theme parks, is the state of Florida’s fourth largest city. This county seat of Orange County has the fountain at Lake Eola as its symbol, which perfectly suits its nickname ‘The City Beautiful.’ Orlando, Florida is among the most visited destination in the world attracting over 70 million visitors annually. Get there via MCO Orlando International Airport, Florida’s busiest airport.
Best Time to Visit
If you’d like to enjoy the city at its finest weather and aggregable airfare and hotel prices, the best time to visit Orlando, FL is between March and May. Be mindful, however, with school breaks and holiday weekends where traveling to Orlando is a bit costlier. The months of September to mid-November likewise offer warm yet cozy temperatures and fair travel and lodging rates. The months to avoid visiting the city are during the autumn season where hurricanes are most active across Florida. Summertime is also not advisable to plan a trip as the state’s temperatures are quite unbearable and Orlando FL hotel room rates are insanely high due to school breaks. The holiday season during late November and February also has prices at a premium for the obvious reason.
What to Do & Area Attractions
Boredom has no place in Orlando. For first-timers, the city is not known as the ‘world’s Theme Park Capital’ for nothing. Aside from Walt Disney World, it is home to other major theme parks, namely Universal Orlando Resort, Seaworld Orlando, and Legoland Florida. Other Orlando attractions worthy of visiting are International Drive or I-Drive, The Wheel at ICON Park, Fun Spot America, SEA LIFE Orlando Aquarium, Madame Tussauds Orlando, and more.