Refinancing your home?


REFINANCING A MORTGAGE  by Kristin Tauscher

 

Here are some tips and strategies that save you money when you are in the market to refinance your home loan. Don't get caught in the trap of consuming your home equity by getting deeper into debt to go on vacation, purchase unnecessary items and spread out your car loans and credit card balances over 30 years. Our  professionals help you implement viable refinancing strategies to conserve your home equity, build greater wealth and achieve your goals in life. Understand that you may need to pay higher fees or interest rates if you are getting cash out of your home equity vs. simply paying off the current balance. Also, you may lose the interest tax deduction on cash-out funds in excess of $100,000.

 

Our professionals help you structure your refinancing transaction to give you the best overall financial impact for your individual circumstances. Our  mortgage professionals help you evaluate the mortgage products that will work best in your situation. Remember, it is far better to find a professional who can help you implement the best strategy with competitive interest rates than for you to shop for the lowest rate with the wrong strategy. Don't pay too much for title insurance - this is a very common mistake that can be avoided. All lenders will require Title Insurance each time a mortgage loan is granted. This is because it ensures the title to the property is free from any surprise liens that occurred previously. So, in essence, it covers the time frame prior to the mortgage closing. That is why a new one needs to be done even on a refinance. Generally speaking, law regulates title policy fees so all title companies charge the same amounts. Our professionals help you save over 50% by making sure you get the "refinance" instead of the higher "basic" rate.

 

Know your credit score - you may be able to get a better mortgage rate and more favorable loan terms by restructuring some of your balances on credit cards, car loans, etc. Our professionals help you correct errors on your credit report and determine which balances to restructure or pay off in order to improve your credit score.


Although many have refinanced in the recent past there are new opportunities for many homeowners who have not refinanced or may benefit from current lower rates.  Additionally, with financial goals and plans always changing you may benefit from restructuring your mortgage to better fit into you current financial situation. Monitoring your investments and your mortgage regularly ensures that you will be better positioned to accomplish your short term and long term financial goals.

By analyzing your current situation you will be able to make a more informed decision as to which is more beneficial: refinancing or maintaining your current mortgage.

 

Important Questions to ask:

1) What is your current interest rate?

2) What is the current market interest rate?

3) Is the rate fixed or variable?

4) How long do you plan to stay in this home?

5) Do you have cash available for the closing costs?

6) Is the value of your home increasing, decreasing, or staying about the same? What are the short term and long term prospects for the value of your house?

7) How does your mortgage fit into your overall financial plan?