Thinking About Refinancing? Read This First
Have you ever responded to an advertisement you received in the mail or by email promising the investment opportunity of a lifetime, a way to lose fifty pounds in a month, or a free swim in the fountain of youth? So, why would you do so when it comes to your biggest asset, your HOME?
Solicitations arrive daily promising you a mortgage payment at a 1.5% fixed rate or other outrageous terms which seem to be “too good to be true.” Well, I am sorry to be the bearer of bad news; it is too good to be true. In order to be an educated consumer when it comes to refinancing your home you must ask yourself the following question:
What am I trying to accomplish by refinancing my home?
Are you interested in reducing your payment, your term, or access the equity in your home? Many lenders will tell you what they think you want to hear versus asking you the simple question above and actually tailoring the scenario based on your answer.
Most lenders require you to lock in for an amortization period of 30, 20, 15 or 10 years. I am able to lock in at a term which is specific to your needs. If you have been paying down a 30 year loan for 3 years and decide you want to refinance and take advantage of lower rates, you can lock in for a 27 year term and not have to start over at 30 years.
Also, if you are comfortable with your payment or one that is slightly higher, you could reduce your term and rate instead of reducing your payment.
Taking equity out of your home is another reason a refinance. Often times people cash out equity to consolidate debt, pay for college, or possibly some home improvements.
You need to be working with a trusted professional. Your REALTOR or some other personal referral is your best place to look for a good mortgage banker, not your mailbox or some online advertising website. Your local lender will have access to local appraisers, title companies, etc. Refinancing your home should take 30 to 45 days. Feel free to call me anytime for a free financial analysis.
NMLS #: 476394 | Caliber Home Loans
6701 Democracy Blvd #401, Bethesda, MD 20817
o: 240-855-0805 c: 301-529-1676 | efax: 855-233-3716
Apply online at www.fahmymortgageteam.com
Licensed in DC, MD, VA, NC, PA and DE