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Mortgage interest rates are the lowest they’ve been in years and perhaps you’re wondering if it’s time to refinance your loan. Lenders advertising their refinancing services make it sound as easy as filling out a form and paying less each month. While refinancing does not need to be complicated, here are 5 common mistakes that could cost you thousands of dollars over the course of the loan. Refinancing can be a great experience if you can avoid making these mistakes.

1. Not Shopping Around – Not all loans are structured the same. It’s important to compare your options. Even loans with the same interest rate can have different costs, fees, and terms.
2.  Shopping for Too Long – Interest rates change quickly and, in this volatile market, it’s possible to lose a great interest rate by looking for too long. Consider getting three different loan options at the same time and choosing the best option out of those three to work with.
3. Adding Years to Repayment – Interest rates are not the only consideration in deciding to refinance. If you are 7 years into a 30-year loan, restarting the clock with a new 30-year loan can cost you thousands of dollars. Never refinance with a longer term than your current status.
4. Not Considering Your Job Stability – The pandemic has created instability in the job market; consider your employment situation carefully before using precious savings for loan costs. Additionally, if you are moving from a 30-year loan to a 15-year loan, your payment might go up. Make sure you have the income to comfortably pay that increase each month.
5. Assuming Your Credit is Great – Before looking for a refinance, check your credit score and make any adjustments before you get a surprise at closing.

This is a great time to reduce your mortgage interest rate, while rates are low. Consider all the aspects of the refinance offer first and make sure you get the best option to save money.

Most homebuyers realize that they can’t expect a perfect home inspection report when buying a resale home. Cosmetic flaws and minor repairs are easily managed and shouldn’t be deal breakers. That said, there are some issues that are more serious and should give the buyer pause if not addressed adequately.

10 Home Inspection Red Flags

1. Leaky and Rundown Roofing – watch for signs of current or past water damage.
2. Poor Drainage – drainage issues can cause serious damage to the home foundation, siding and basements.
3. Foundation Issues – signs of foundation problems can include cracks around doors and windows or uneven floors. Foundation problems can cost thousands of dollars to correct.
4. Plumbing Problems – major plumbing issues should be considered carefully and further explored.
5. Pest Infestations – termites and other wood-eating pests can cause extensive damage that can be hard to find and costly to repair.
6. Mold – that musty smell could be due to hidden mold and further investigation should be undertaken as mold can be dangerous to the health of the family. Depending on the type of mold, it can be very difficult to remove entirely.
7. Faulty Heating System – a malfunctioning furnace can be a fire hazard.
8. Electrical Wiring – faulty wiring can cost thousands of dollars to repair.
9. Structural Damage – sagging joists, rafters and door jambs can be evidence of larger issues.
10. Deferred Maintenance – a home in poor condition could be hiding more serious issues due to chronic neglect.

Homebuyers should be alert to these issues and know the costs to repair before concluding the sale. Home sellers should address these issues before putting the home up for sale to ensure they get the best possible sales price