The State of Utah is included in the top 10 most expensive states to buy a house. This does not discourage the residents of The Beehive State from owning a house, however. In fact, in a 2011 survey, results showed that home ownership in Utah was at 76.2%, which is considerably higher compared to the national rate of home ownership at 66.9%.
If you are a Utah homeowner responsible for paying the mortgage and looking into ways to best adjust your mortgage plan to your current situation, Altius Mortgage Group notes that you may want to consider a mortgage refinance. This recalibrates your plan in terms of rate and payment duration, and is best if you belong to any of these groups:
Those with improved credit scores
Most mortgage lenders use the Fair Isaac Corporation (FICO) credit score to assess their borrower’s capacity to manage debts. If your FICO score has recently increased, this is a good time to readjust your mortgage and benefit from improved interest rates.
Those who need more cash
If you are currently short on cash and need to cut down on your monthly house payment, you can do by refinancing your mortgage. This way you can allocate more of your income to other pressing needs whether it is health-wise or something equally important.
Those with ARM
Adjustable Rate Mortgage is prone to balloon as soon as interest rates shoot up. If you have an informed prognosis of an immediate hike in interest rates, refinancing your mortgage plan into a fixed scheme can save you from an unnecessary increase in payments.
Refinancing your mortgage is about adjusting your financial responsibility to your present capacity. In many ways, it gives you options on how best to move forward with your mortgage plan. In specific scenarios, such as those mentioned above, it could be your best option.