Is Now The
Right Time To Refinance?
www.425.com . You have requested information on “How to determine if you should refinance;
Traditionally, the decision on whether or not to refinance has meant
balancing the savings of a lower monthly payment against the costs of
refinancing. But in recent years, lenders have
introduced "no cost" and “low-cost” refinancing packages
that minimize or completely eliminate the out-of-pocket expenses of
refinancing. These refinancing
packages compensate with a higher interest rate, or by including some of the
costs in the amount that is financed. With traditional refinancing, the most
often cited rule-of-thumb is that the interest rate for your new mortgage must
be about 2 percentage points below the rate of your current mortgage for
refinancing to make sense. However,
with the newer low- and no-cost refinancing programs, it can be worth your
while to refinance to obtain a smaller reduction in interest rates. How long you expect to stay in you=
r home
is also a factor to consider. If
you'll be moving in a few years, the month-to-month savings may never add up to
the costs that are involved in refinancing. With interest rates at their all time
record low it makes sense in today’s market to secure the absolute lo=
west
interest rate possible. And don't
wait too long to lock in your rate.
Waiting for a better rate is many times deadly. The odds of hitting the absolute bottom
of the market are very unlikely.
Trying to time the market right you may miss out on the opportunity
to
refinance
The process is relatively
simple. A qualified loan
professional over the telephone will need some basic information and the
process takes less than 15 minutes.
The first step is to discuss your purpose to refinance. Next your loan professional will w=
ant to
know what goals you are attempting to accomplish. Two completely different examples =
of
goals are one family may want to refinance to access equity to pay for a college tuition while another family may simply want=
to
lower their total monthly obligations.;
The next step is to compare your income against your monthly debt
obligations. The loan professional will then ask for you to disclose your
current monthly debt obligations. Your mortgage professional will then comp=
are
those ratios with available loan programs to determine the best mortgage
product to fit your needs. If
everything makes sense the next step will be to complete a loan application. From the loan application, our st=
aff will
begin verifying the information on the application. Once this information is processed, it
is submitted for formal loan approval and the refinance process will be
complete. The loan profession=
al
that has made this information available specializes in analyzing a home owners overall financial profile to determine what
truly is best for you.
Call for more information
1-866-449-7263
