Should I Refinance – For me the answer is yes, You?
The answer is almost always yes. There are a few circumstances where refinancing may take some additional planning.
While lending guidelines are reported to be tough that’s mostly for people with bad credit who are not current on their mortgage payments
Folks that are still current but upside-down aka underwater on their Fannie mae and Freddie mac mortgages are getting a big break that is going to start taking effect just before the holidays.
The revised HARP program, know as: refinance relief for Freddie Mac loans, DU refi plus is Fannie mae’s refinance program will allow many borrowers who were getting turned down due to low appraisal.
Make sure you check out the possibility of reducing your interest rate down to the 3% range. For someone like me with a 248,000 note and 6.25% reducing the rate to 3.5% would cut interest payments almost in half.
Use the mortgage calculator in the sidebar to calculate you refinance relief mortgage payments.
Three Ways to Find the Best Mortgage Deal
For most people, the first of the month means the same old thing all over again — it’s time to write a check for the monthly mortgage payment. And for most people, it’s not likely to be a small check either. According to Kendrick Kapuna at Aspen Dance Realty, mortgage payments consume the majority of the household budget for most homeowners. And considering how much money is at stake, it becomes even more important to locate the best mortgage deal that you possibly can. Here are some smart strategies that can be used in your mortgage search.
Enlist the Services of a Mortgage Broker
What is a mortgage broker? The broker is not the one lending you money. He or she is the individual who helps you organize and prepare your loan application, and then submits it to the lending institutions that are best matched to your financial situation. Mortgage brokers are very tuned in to the current mortgage market, so they are very helpful in determining which lenders are right for you and which ones might be able to offer you the best deal.
Examine All the Details
In order to reach the best decision concerning which loan is the best, you need to look beyond the interest rate and payment amounts and examine all the details of each quote. This is necessary in order to compare them fairly. You also need to make sure that the loan parameters are the same. For example, you should not compare a 30 year term loan to a 20 year term, or a fixed-rate loan to a variable rate.
Get a Rate Lock-In
Once the hardest part of the loan application process is behind you, and you’ve been offered a mortgage deal that you are satisfied with, the last step to take is to lock in the interest rate. An interest rate lock offers protection from interest rate fluctuations that can affect your rate during the remaining time of the application process.