Is Your Friends Refinancing Mortgage Choice A Better One

Is Your Friends Refinancing Mortgage Choice A Better One

Is Your Friend’s Refinancing Mortgage Choice a​ Better One?
Things are always better on​ the​ other side of​ the​ fence .​
Other people seem to​ be making the​ smart choices,​ from girlfriends to​ cars and even refinancing loan programs .​
Why not you?
Proact,​ not react
After making several bumbling errors,​ don’t make a​ serious mistake,​ not with a​ refinancing mortgage plan .​
a​ costly mistake at​ this time of​ economic hardships will surely make you​ miserable,​ while your friend is​ having a​ good time with his smart choice of​ almost everything .​

Before you​ announce your grand design for a​ refinancing mortgage loan,​ do your assignment .​
Read up on​ mortgage news,​ and join forums .​
You can ask the​ silliest questions,​ assuming your knowledge on​ these matters is​ zero .​
How you​ got the​ first loan is​ questionable,​ and you​ are suffering for your haste and ignorance .​
You can also tap information from various online sites to​ get a​ broader picture of​ the​ mortgage business .​
Perhaps your friend can recommend a​ broker .​
Or if​ you​ can,​ get an​ independent and reliable agent who can spell out the​ pros and cons without pressuring you​ into making a​ hasty decision .​
How to​ choose your refinancing mortgage lender
Here are some tips to​ get even with your friend:
- Weigh the​ terms of​ the​ mortgage .​
Are you​ ready to​ be tied and bound for a​ 30-year loan? a​ longer term loan has a​ lower monthly payment .​
You can have extras for those little things in​ the​ house or​ for yourself .​
a​ 15-year loan will be more expensive,​ but you​ will be saving a​ lot on​ interests alone.
- Examine the​ advantages and disadvantages of​ a​ fixed rate to​ an​ adjusted rate .​
a​ fixed rate is​ stable .​
Throughout the​ period loan,​ you​ will know how much money to​ set aside monthly .​
a​ variable rate has the​ advantage of​ dipping into all-time lows,​ saving you​ more money .​
But when the​ rates soar to​ an​ all-time high and stays there for a​ long time,​ you’re dead meat .​

- Do your math .​
Some lenders will charge origination or​ discount fees while others will not .​
Compare the​ costs .​
The lender boasting no fees will likely skim all your cream .​
So,​ find out if​ you​ are saving more from a​ lower rate .​
You might be astounded with your findings .​

- Shop around for lenders .​
There will be one good one out there .​
Ask questions,​ and compare their responses .​
If you​ are unsure of​ the​ technical and financial details,​ then get a​ professional to​ help you​ .​

- If you​ decide to​ stick with your current lender,​ that’s fine too .​
Since your refinancing mortgage lender has your files and is​ aware of​ your performance,​ you​ might get a​ better deal the​ second time around .​
Preparing for your refinancing mortgage loan
Assess your financial situation: income,​ gratuities,​ fixed expenses,​ insurances,​ regular monthly bills,​ and expenses .​
If you​ are getting a​ lower interest rate,​ let’s say about 7.5% for a​ $200,​000 30-year loan,​ you​ will be paying $1,​398,​ which is​ already $70 less than your present monthly bills.
Get that $70 and save it .​
By the​ end of​ the​ year,​ you​ will have $770 to​ spend at​ the​ end of​ the​ year or​ money for your taxes .​
But you​ will be breaking even after 29 months .​
This is​ the​ grunt part of​ your refinancing mortgage loan .​

Will that be a​ better deal like your friend’s at​ the​ other side of​ the​ fence? If it​ is,​ go for it.

Is Your Friends Refinancing Mortgage Choice A Better One

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