Should I refinance ?
Should I refinance my home loan NOW ?
Can I refinance my mortgage ? How can I do it ? Is now the right time ?
If one of these questions have passed your mind in the last few month, then this calculator is especially for you.
How soon you can refinance your home depends on the lender where you apply for the new loan. Some lenders will refinance you regardless of how long you have owned the property. You need to know that in case you are about to pay off the mortgage in short time (1-3 years) you might find after doing calculations that it is not worth to refinance the mortgage, because all the closing costs and fees, will sum up to the amount you will be saving with the better interest rates.
Some lenders might have “seasoning” requirements, which means you must be in your house for at certain period of time. However, some FHA mortgages require that the borrower own the property for a full 90 days prior to refinancing. Also, if the borrower has a pre-payment penalty on his mortgage, he may incur a fee for refinancing prior to the end of that period.
Even when you can refinance immediately, take into mind that some lenders or banks might request you to pay all the fees associated closing costs in advance or in one bulk. This means you will need a large sum of cash ready.
How to qualify for refinancing
There are some terms and documentations you will probably need to provide in order for the refinancing process to be completed.
- Show income abilities: Usually, you’ll need to show original pay stubs for the last 30 days. So the lenders have some proof you have an income and family steady cash flow.
- Have your home owners insurance ready: the lender will verify you have a sufficient coverage on your property.
- W-2 forms can be asked for – The lender whats to secure it self and learn more and verify past employment and income history.
- Asset information: Will serve as your ability to financially stand all money needed for closing costs, statements for savings, checking and 401K accounts and investment records for mutual funds or stocks. This asset allocation is your financial back bone.
- Title insurance : Your lender verify the ownership and taxes, names on the title and legal description of the property.
I you are all set with this, you can now check with the refinancing calculator, is it worth the hassle and trouble. Will it in the bottom line – save you money or improve your financial situation.
Should I Refinance?
Over the last couple of years with interest rates at a 40-year low, many people refinanced their mortgages. Even though rates have crept up over the last couple of months, refinancing may make sense for you.
Refinance can be a solution in case you think you slide into a mortgage foreclosure situation. As a homeowner you have signed a mortgage agreement saying you will make regular payments. The lender agreed to give you such a large sum of capital since he knew if the payments fall behind or are missed altogether he may take the home back through legal action. It is best that, the mortgage will be refinanced, and the loan will be spread again to 30 years, which will mean lower monthly payments you can afford, even though in the over all more money will be payed at interest payments.
So What Is Your Next Step?
If you want a better chance to get lower rates, you need to take action, and the sooner the better. Every week you are wasting money.. sending dozens of dollars to the rich credit companies, who relay on you to keep doing NOTHING.
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So do your math… and take action NOW.