Alabama is home to some of the best weather in the country. Friendly people, great schools, and one of the most beautiful coastlines on earth are also part of this great state. With all of this beauty, it is no wonder that the demand for housing in Alabama is rising alongside interest rates. In addition, the time to refinance their current mortgages in order to pay off high-interest debt, obtain a better interest rate and loan package, to purchase a new car, or to finance college for a child is drawing nearer. In order to obtain the best rate on a refinancing package, which will consequently make your monthly payments more affordable, it is important that potential refinancers shop around. By engaging in significant research, borrowers will obtain the best value from the best possible lender.
Quick Alabama Housing Facts:
- Percent of homeowners in Alabama: 72.5%
- Percent of renters in Alabama: 27.5%
- Median annual income in Alabama: $37,860
- Average credit score in Alabama: 676
- Best Alabama city to live in: Trussville, AL
- Median Alabama home value: $85,100
When to Refinance in Alabama
Selecting the proper time at which to refinance can be a particularly delicate process. First of all, if you think that you might be considering a refinancing program, it is very important to keep a close eye on the trends in interest rates. Generally speaking, it is not a good idea to refinance your mortgage unless interest rates are consistently low, meaning consistently less than 2% lower than what you are currently paying. It is also very important to price out the refinancing costs that will be associated with the entire process. Many borrowers find themselves dismayed by the fact that they lost a substantial portion of their equity in refinancing fees. In addition, it is also important to calculate the savings that refinancing will yield in order to avoid paying higher monthly payments or ending up paying more than you would have for your original loan. Try to price out the cost of your current loan up to the point at which it will be paid off, then try the same thing with the new loan by plugging in the new loan amount, period, and the interest rates attached to the refinancing package. If you find that you will lose money by refinancing, you may want to consider some other options.
How Much House Can I Afford in Alabama
One of biggest problems facing Alabama homebuyers is figuring out how much house they can afford. We have some great mortgage calculators that can help you figure how much home will fit into your monthly budget. Some things to keep in mind when figuring out how much you can afford is: what is your debt-to-income ratio, how long to you want to stay in your home, and what your credit score is. All these factors are important when a lender decides to give you a loan or not.
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