5 Refinancing Tips You Can’t Afford to Ignore

refiancing 3Thinking about refinancing?  NOW is the perfect time.  Interest rates are low and will probably remain so until after the election.  Who knows what will happen on November 8th and after so make sure you do your refinancing now.  Yes there will be a lot of paperwork and things to get together for the lender just as if you were getting a mortgage for the first time.  But with interest rates so low you may find you can lower your monthly payment significantly.  Be sure to factor in the closing costs though as they will be due in a lump sum at the closing of your mortgage.  Ready to go?  I know some great mortgage brokers who will work hard for you and get you the best deal they can.  Call me so we can talk about what you need and you can get started on the process.  Read this article first for some good tips to keep in mind.

Reprinted with permission from RISMedia. ©2016. All rights reserved.

By Keith Loria
It’s no secret that the past couple years have been an opportune time to refinance a mortgage as mortgage rates were hitting historic lows. In fact, according to the Mortgage Bankers Association, the average interest rate on a 30-year fixed-rate mortgage was 3.49 percent near the end of July, down from 4.2 percent at the same time last year, and 3.9 percent from January.

Not only can refinancing a mortgage save you money, it can also help you pay off your home quicker, and will even unlock more equity in your home.

If you’re looking to take advantage of today’s low mortgage rates, keep the following items in mind, as they may jeopardize the process.

1. Waiting too long. While rates have been low for some time now, with some experts predicting refinancingthey’ll go even lower, the upcoming election may lead to unpredictability. With low rates like the ones we’re seeing today, time is of the essence, so be sure to refinance sooner rather than later.

2. Not being prepared. When your lender calls or emails asking for information, don’t put it off. Have your documentation and financial information ready so that you can sign it in a timely manner. The last thing you want to do is plan to refinance your home when you’re going to be out of town on vacation, as this will most likely keep you from being able to get everything in place before you’re out of pocket.

3. Not shopping around. Even if you’re happy with your current lender, it doesn’t mean that you need to stay with them. Shop around and make sure you’re getting the best deal out there. Even a little difference in rates can save a lot of money over the course of a mortgage. If you find a better deal, let your lender know. They may even be willing to match.

4. Adding to your loan term. When faced with refinancing, some people decide to add to the numberrefinancing 2 of years of their loan term, lowering their monthly payments, but increasing the total amount of interest over time. Conversely, lowering the terms by five or 10 years can save you a lot, so if you want to change the years, make it lower.

5. Forgetting closing costs. When you refinance a home loan, it’s important to remember that you’ll most likely have to pay closing costs, including a loan application fee, appraisal fees, title fees and attorney’s fees. Be sure you have this money on hand.

By making smart decisions, your refinancing can be a smooth experience.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a lower monthly payment.



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