Why Should I Refinance
Hello All,
I want to talk to you about whether or not refinancing makes sense and show you some options when it does and when it does not. Remember working with a mortgage professional is going to be something you should focus on in the beginning because they should care about you enough to make sure you get a great loan and it does provide the benefits necassary to move forward.
1) Saving money monthly is not always the best idea. Especially if you can afford a higher payment. For those of you who are struggling on a monthly basis and need to save money now. Tell your loan officer do not be afraid to dislcose your situation. The more they know about you the better they can help you. For those who can afford the payment they are in or even higher. Look at ways to reduce term or save on your overall loan. This can be crucial when facing retirment soon. Especially if it is within 15 years. Look at a 15 year option if it is doable.
2) Don't be afraid of an arm rate if it accomplishes your goals. Especially if you may be moving within the next 5 years. These are still good loans and can save you a lot of money on a monthly basis.
3) Don't be shocked at closing costs. In todays market there are going to be fees. That is the nature of the business. The good thing about this is that lenders are not jacking up rates any more to make money that way. You pay it up front and save a ton of money over the course of the loan.
4) If you need the lowest payment possible do not be afraid to ask for an interest only loan especially for you in states where your home has depreciated very fast over the last couple years. These loans could be extremely beneficial to you until your equity starts rising again.
5) Remember rate and costs are not the way to choose a company or mortgage professional. Sometimes you can go with your gut or listen to what the loan officer says. If they care about you they will show it in their follow up and the way the listen to your needs. Make sure you choose someone who is looking to accomplish for you what you need to accomplish. This is important it is your loan!!
I want to talk to you about whether or not refinancing makes sense and show you some options when it does and when it does not. Remember working with a mortgage professional is going to be something you should focus on in the beginning because they should care about you enough to make sure you get a great loan and it does provide the benefits necassary to move forward.
1) Saving money monthly is not always the best idea. Especially if you can afford a higher payment. For those of you who are struggling on a monthly basis and need to save money now. Tell your loan officer do not be afraid to dislcose your situation. The more they know about you the better they can help you. For those who can afford the payment they are in or even higher. Look at ways to reduce term or save on your overall loan. This can be crucial when facing retirment soon. Especially if it is within 15 years. Look at a 15 year option if it is doable.
2) Don't be afraid of an arm rate if it accomplishes your goals. Especially if you may be moving within the next 5 years. These are still good loans and can save you a lot of money on a monthly basis.
3) Don't be shocked at closing costs. In todays market there are going to be fees. That is the nature of the business. The good thing about this is that lenders are not jacking up rates any more to make money that way. You pay it up front and save a ton of money over the course of the loan.
4) If you need the lowest payment possible do not be afraid to ask for an interest only loan especially for you in states where your home has depreciated very fast over the last couple years. These loans could be extremely beneficial to you until your equity starts rising again.
5) Remember rate and costs are not the way to choose a company or mortgage professional. Sometimes you can go with your gut or listen to what the loan officer says. If they care about you they will show it in their follow up and the way the listen to your needs. Make sure you choose someone who is looking to accomplish for you what you need to accomplish. This is important it is your loan!!
