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Tag: Mortgage Refinance

  • 2020 Homeowner Relief Stimulus: Do you Qualify?

    2020 Homeowner Relief Stimulus: Do you Qualify?

    If you own a home, chances are high that you’ve been giving some serious consideration to refinancing or seeking some relief from your mortgage payment.

     

    For homeowners who are having trouble making mortgage payments, forbearance rules are still in effect as part of the CARES Act. Regulators haven’t determined when loans backed by Fannie Mae or Freddie Mac will wind down forbearance. Homeowners with loans insured by the Federal Housing Administration are being asked to contact their servicer and request forbearance before Dec. 31.

    Senate Majority Leader Mitch McConnell (R-KY) tweeted the announcement of the second bill, saying it comes at an important time for Americans during the holiday season.

    “As the American people continue battling the coronavirus this holiday season, they will not be on their own,” he tweeted. “Congress has just reached an agreement. We will pass another rescue package ASAP. More help is on the way.”

    If you search for government or Congress mortgage relief, you’ll find results about programs like HARP and FMERR. But the information you see might be misleading. HARP and FMERR, the two major relief programs, are now expired. Even the CARES Act, which offered temporary relief from mortgage payments during COVID, won’t lower your loan costs in the long term. There’s just one large-scale relief program for 2020 that helps homeowners the way HARP and FMERR did.
    The Fannie Mae high LTV refinance option (HIRO) is still actively helping homeowners refinance with little or no equity in their homes.

    If you are in decent shape with your Mortgage and are able to make payments, you may want to consider refinancing your loan.

    Why Refinance?
     
    Everyone knows that mortgage rates have fallen to record breaking lows, but did you know about the “adverse market refinance fee” that took effect on Sept. 1 2020? This fee will apply to most loans sold to Fannie Mae and Freddie Mac. As an example, if you’re looking to refinance a $350k mortgage, the fee would cost you an additional $1,750.

    Other reasons to refinance:
    1. Build your equity
    2. Improve your loan terms
    3. Get a better interest rate

     
    If you are looking to refinance, make sure you check into the following items:

    1. Mortgage rates are currently below 3%, which means that almost 18 million home owners can save money by refinancing.
    2. Closing costs, which typically account for about 2%-3% of your loan amount should be taken into account.
    3. Do you plan on moving? If you’re looking to sell your home in a few years, you may not save enough money with a refinance to make up for what you’ll spend in closing costs.
    4. Make sure your credit score is in good shape. You most likely will not be able to score that low interest rate unless your credit score is above 700+.

    The bottom line is to make sure you consider all of variables which may impact your unique situation. Here are tips when choosing the best mortgage loan refinancing company

    1. Read lender reviews. Happy customers might write great reviews about a company, but folks who have a bad experience will DEFINITELY write a bad review.
    2. Shop around online. Make sure to compare reputation, rates, and options before deciding.
    3. Shop your rate. Once you have a rate from a company, don’t be afraid to shop it with the competition. If you don’t ask, you won’t get.
    4. Know your credit score. A lender will use your credit score one of the main factors in deciding your interest rate. Make sure you’re aware of your credit score and history.

     


  • Are You Looking to Refinance? Interest Rates Just Went Down Again.

    Are You Looking to Refinance? Interest Rates Just Went Down Again.

    If you own a home, chances are high that you’ve been giving some serious consideration to refinancing lately.

     

    Why Refinance?
     
    Everyone knows that mortgage rates have fallen to record breaking lows, but do you know about the “adverse market refinance fee” set to take effect on Sept. 1 2020? This fee will apply to most loans sold to Fannie Mae and Freddie Mac. As an example, if you’re looking to refinance a $350k mortgage, the fee would cost you an additional $1,750.

    Other reasons to refinance:
    1. Build your equity
    2. Improve your loan terms
    3. Get a better interest rate

     
    If you are looking to refinance, make sure you check into the following items:

    1. Mortgage rates are currently below 3%, which means that almost 18 million home owners can save money by refinancing.
    2. Closing costs, which typically account for about 2%-3% of your loan amount should be taken into account.
    3. Do you plan on moving? If you’re looking to sell your home in a few years, you may not save enough money with a refinance to make up for what you’ll spend in closing costs.
    4. Make sure your credit score is in good shape. You most likely will not be able to score that low interest rate unless your credit score is above 700+.

    The bottom line is to make sure you consider all of variables which may impact your unique situation. Here are tips when choosing the best mortgage loan refinancing company

    1. Read lender reviews. Happy customers might write great reviews about a company, but folks who have a bad experience will DEFINITELY write a bad review.
    2. Shop around online. Make sure to compare reputation, rates, and options before deciding.
    3. Shop your rate. Once you have a rate from a company, don’t be afraid to shop it with the competition. If you don’t ask, you won’t get.
    4. Know your credit score. A lender will use your credit score one of the main factors in deciding your interest rate. Make sure you’re aware of your credit score and history.

     


  • Is Now the Time to Refinance Your Home?

    Is Now the Time to Refinance Your Home?

    When is the right time to refinance your home? That can be a tricky question, as the act of refinancing can be time-consuming and you want to make sure you’re getting the best deal. However, the general rule of thumb is that you want to refinance when you can save at least 2% of the interest rate of your current mortgage. Let’s get more into home refinance, what it means, and when you should pull the trigger.

    Remember: if you have specific questions about real estate or home values, you might wish to speak to a professional financial advisor. Everyone’s situation is unique, and while general rules are helpful, you’ll want specific advice when you go to make major moves like refinancing your home.

    Home Refinance

    What is Home Refinance?

    Home refinancing refers to a practice that involves taking out a new mortgage loan to pay off an existing loan. Broadly, this falls under the umbrella of a financial practice called debt consolidation. This might sound a bit odd at first. Why would you take out a loan just to pay off another loan? However, this makes more sense when you look at the benefits you could get. For instance, if you can get your interest rate lower on the new loan than your existing loan, it’s a good idea to refinance.

    Typically, people are going for the lower interest rate. However, there are other reasons to do this. These reasons could include switching from a fixed-rate mortgage to a variable mortgage, or vice versa. One could also make the switch in order to shorten the length of their mortgage.

    Lower Interest Rates

    One of the main reasons people will refinance is to get a lower interest rate. As a general rule, if you can reduce your interest rate by at least 2%, you should do so. In a market with historically low interest rates, you should also consider getting a fixed-rate loan, which will lock in a rate for the duration of the loan. This can give you peace of mind that the loan will remain stable even as the interest rates of the market go up.

    When one gets a lower interest rate on their mortgage, they have two options. First, they could simply opt to have lower monthly payments. This is great for people who might not have a lot of money left over at the end of the month. Another option would be to pay off the loan faster by keeping the payments the same. This is a great option for people who aren’t having any issue meeting all of their bills every month.

    Fixed Rate: The Right Call?

    Should you get a fixed rate loan when you refinance, or should you opt for an adjustable rate? This is a complex question that depends on a number of factors, like the length of the loan and the current interest rates in the market. However, as a general rule, if interest rates are low or your loan is for a longer period, you may wish to get the fixed rate. This locks in the interest rate and gives you peace of mind that you’re not having to keep up with the market’s rates.

    On the flip side, if you loan is longer, or if interest rates are historically high, you may wish to go with an adjustable loan. Adjustable loans change their interest rates based on the market, generally reflecting what you see on the housing market. These allow you to buy-in with a higher interest rate without worrying about getting stuck with it even while rates in the market fall.