Know Your Mortgage Refinancing Questions And They Ll Tell You No Lies


Know Your Mortgage Refinancing Questions And They Ll Tell You No Lies 1

Know Your Mortgage Refinancing Questions And They’ll Tell you​ No Lies
Timidity won’t get one anywhere but ruination .​
When it​ comes to​ your mortgage refinancing concerns,​ you​ need to​ know all the​ details upfront .​
Stop hesitating whether you’ll refinance or​ not .​
The venerable Sir Walter Scott summed it​ up - to​ the​ timid and hesitating,​ everything is​ impossible because it​ seems so.
What you​ Need to​ Know
If you’re on​ to​ your second mortgage,​ then why should you​ want to​ know more about mortgage refinancing? Was your first mortgage experience an​ unpleasant one or​ did somebody else do the​ legwork and brainwork for you? No? Perhaps you​ want to​ take the​ driver’s seat this time when it​ comes to​ your finances.
That should have been the​ case during your first mortgage .​
For all borrowers out there,​ bear in​ mind that refinancing,​ and other refinances for that matter,​ have different rates,​ policies,​ advantages,​ and disadvantages.
The importance of​ knowing everything about loans is​ your ace up your sleeves,​ and the​ important information you​ must be aware of​ are the​ points,​ rates,​ and fees encountered for every loan.
The fees-in-waiting
For every mortgage refinancing loan closing,​ there are fees that you​ will have to​ pay .​
You’ll be dipping deep again into your already depleted pockets .​
Sigh,​ sigh,​ and more sighs .​
Shaking your head in​ disbelief won’t make the​ nightmare go away .​
It’s for real,​ and you​ didn’t ask beforehand when the​ agent smilingly told you​ about low interest rates,​ and that this is​ the​ time to​ refinance.
The fees-in-waiting are: purchase points,​ processing,​ land survey,​ appraisal,​ and there’s the​ monthly interest rates which you​ probably know about .​
There may be some surprising fees,​ but do you​ know if​ those fees will be included in​ your monthly payments or​ not?
The obvious is​ – before you​ can lay your hands on​ the​ mortgage refinancing loot,​ you’ll be shelling out more of​ your earnest money OR you’ll be paying a​ higher monthly bill because some of​ the​ fees may have been integrated into your account .​
Therefore,​ when you​ talk to​ the​ friendly agent,​ ask your refinance questions as​ if​ you’re an​ agent yourself .​
Come closing time,​ you’re ready .​
No more fears.
What about Purchase Points?
Purchase points are discount points you​ pay at​ the​ closing to​ lower your interest rate .​
a​ point is​ equivalent to​ one percent of​ your total loan amount .​
Let’s say you​ have a​ $200,​000 loan .​
That point will cost you​ $2000 .​
It’s like advancing payment to​ your loan .​
The more points,​ the​ lower the​ interest rate .​
The downside? You’ll need a​ bundle at​ closing time.
Since you​ have planned to​ stay in​ your home forever,​ it​ would be wise to​ purchase points .​
Just calculate how much points you​ can afford and how much you​ can pay monthly without starving.
Interest Rates
If life was only uncomplicated,​ mortgage refinancing loans would be simply borrowing an​ amount which will be paid back with an​ interest rate and payment period agreed on​ .​
But,​ no.
Mortgage interest rates fluctuate like the​ tides .​
For the​ moment,​ the​ interest rate is​ low but next thing you​ know,​ it​ has gone up another one or​ two notches .​
Since lenders allow 15,​ 45,​ and even 60 days,​ take time to​ lock in​ into the​ lowest rate .​
But again,​ there’s a​ surprise waiting for you​ .​
It’ll be more expensive if​ you​ take your sweet time before you​ lock in​ your mortgage refinancing loan.



Know Your Mortgage Refinancing Questions And They Ll Tell You No Lies



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