Mortgage Refinancing Tips

Mortgage Refinancing Tips
As interest rates continue to​ creep upwards,​ many home owners are looking at​ refinancing options .​
Here are some mortgage refinancing tips .​
Mortgage Refinancing Tips
Rates have been increasing steadily for the​ last six months .​
These increases are expected to​ continue into 2018 .​
Such increases are putting pressure on​ homeowners who took out adjustable rate mortgages or​ have been borrowing money against a​ home equity line of​ credit .​
For people in​ this position,​ refinancing into a​ fixed rate mortgage is​ starting to​ look very attractive if​ for no other reason than to​ avoid future bumps in​ the​ rates .​
If you​ are considering refinancing your mortgage,​ there are a​ couple of​ things to​ keep in​ mind .​
Unlike the​ rushed process of​ trying to​ get funding for a​ purchase,​ you​ have more time to​ evaluate and compare mortgage options .​
Shop around and find out what different lenders are offering that fit your potential needs .​
1 .​
What is​ your goal? - is​ your goal to​ lower the​ monthly payment or​ to​ simply try to​ pay less interest? While these questions may seem like the​ same thing,​ a​ lower interest rate can be translated into the​ same month payment amount,​ but with more of​ the​ payment being applied to​ the​ principal of​ the​ loan .​
This,​ of​ course,​ helps you​ pay off the​ note faster .​
The bigger point is​ to​ simply figure out your goal and find a​ loan that meets it .​
2 .​
Shop Lenders - One of​ the​ best ways to​ do this is​ seek a​ pre-approval from a​ variety of​ lenders .​
You might be concerned this will hurt your FICO score,​ but refinance credit requests often don’t ding your FICO .​
If you’re not sure about this,​ simply don’t supply the​ lender with you​ social security number .​
They will give you​ a​ less definite loan offer,​ but you’ll still have the​ advantage of​ reading the​ fine terms to​ make sure it​ accomplishes your goals .​
3 .​
In Writing – Once you​ choose a​ lender,​ you​ need to​ nail down three important things in​ writing .​
The first is​ the​ interest rate .​
The second is​ the​ closing costs,​ if​ any .​
The third is​ any pre-payment penalty associated with the​ loan .​
If the​ lender drags there feet on​ any of​ these,​ consider walking away from the​ loan .​
Refinancing a​ mortgage is​ a​ less stressful process when compared to​ getting a​ purchase loan .​
You are in​ the​ catbirds seat,​ so don’t let lenders push you​ around.

You Might Also Like:

Powered by Blogger.