Homeowners everywhere, are you still
living with that sky high interest rate you were given when you first bought
your house? Sure, your credit may not have been great then, but have you been
keeping up on your house payments, car payments, and even your credit card
payments? If you have, chances are that your credit scores that you could use
to negotiate a better interest rate on your mortgage loan.
The Costs of Refinancing
When refinancing your mortgage loan,
there are a few things to keep in mind. There is quite a bit of interest rate
payments that increase the overall mortgage loan over those 30 years you signed
up for that you might be able to reduce significantly with a refinance. There
are often many costs involved though and many are unnecessary.
Unfortunately, through all the
recent economic problems, many companies have appeared overnight to offer their
‘help’ – assistance that has often cost way more than it should because they
are trying to scam homeowners into thinking a refinance has to be expensive.
What Happens during Refinance
Applications?
When you talk to your lender about
refinancing, they will first want your credit report. It’s important to get
copies of these reports from the three main credit reporting agencies and see
what may need to be corrected and updated prior to applying for a refinance.
You will also hear from the lender
about what fees or costs may be involved with a refinance. The good news is
that there are new refinance opportunities like the FHA Streamline Refinance
where you may avoid costs altogether.
Lender Fees
Lenders fee for refinancing mortgage
loans can be negotiated and even waived completely, especially in this current
economy where many homeowners need a lot of assistance to ensure that they can
keep their homes even when they are underwater due to the significant reduction
in home values. The old adage of “don’t ask, don’t get,” certainly applies
here.
Discount Points
Essentially, you pay upfront for
getting your interest rate lowered, which are called points. This can be
avoided as your credit score goes up and as more refinance programs become
available to help the homeowner in need.
Most importantly, get all terms in
writing that clearly delineates any fees associated with discount points or
other lender fees.
Get Our Assistance
No one cares more about your
mortgage loan than we do. That's why we willingly help each and every homeowner
to determine their best refinancing options.
Guided by a higher power, our team
lives by integrity and transparency in everything we do to ensure you have the
best mortgage loan for your situation. Contact us now to learn more!
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