Mortgage Refinance Tips & Tricks
With current interest rates as low as just over 5%, refinancing your mortgage can be a good choice. However, banks and lenders currently have pretty strict policies and lending criteria, so it's not easy to get accepted.
If you go through the trouble to prepare for your mortgage refinance, you can vastly increase your chances of getting accepted by a lender. We will go over a few things in this article you need to know before getting a mortgage refinance.
Home prices are dropping and for sale signs are popping up left and right. For a refinance, it is oftentimes important to have equity in your home. If you currently owe more than your home is worth, getting a refinance is going to be tough. Lenders will usually ask for an appraisal before accepting a refinance.
The government has announced that there are plans in the making to help homeowners that are in a negative equity situation. The exact details of these plans have not been made public yet.
A lender also wants to know your income. If the income is not sufficient to do a mortgage refinance, equity will come into play. If you have little equity, you will have trouble getting accepted for a mortgage refinance. On the Internet there are many sites that can tell you what you can approximately finance with your current income. Be sure to take a look before applying.
Your credit score is also important. If you have very bad credit, it's not easy getting accepted for any loan or even a credit card. You will also be paying more than the average person with an average credit. If possible, try to improve your credit score before applying for a mortgage refinance.
When considering a mortgage refinance, always look at the total costs of this decision. You have to know if the refinance is worth it. You will face some added costs when you decide to refinance, so know that you will be living in your home for another couple of years in order to recoup the costs.
If you go through the trouble to prepare for your mortgage refinance, you can vastly increase your chances of getting accepted by a lender. We will go over a few things in this article you need to know before getting a mortgage refinance.
Home prices are dropping and for sale signs are popping up left and right. For a refinance, it is oftentimes important to have equity in your home. If you currently owe more than your home is worth, getting a refinance is going to be tough. Lenders will usually ask for an appraisal before accepting a refinance.
The government has announced that there are plans in the making to help homeowners that are in a negative equity situation. The exact details of these plans have not been made public yet.
A lender also wants to know your income. If the income is not sufficient to do a mortgage refinance, equity will come into play. If you have little equity, you will have trouble getting accepted for a mortgage refinance. On the Internet there are many sites that can tell you what you can approximately finance with your current income. Be sure to take a look before applying.
Your credit score is also important. If you have very bad credit, it's not easy getting accepted for any loan or even a credit card. You will also be paying more than the average person with an average credit. If possible, try to improve your credit score before applying for a mortgage refinance.
When considering a mortgage refinance, always look at the total costs of this decision. You have to know if the refinance is worth it. You will face some added costs when you decide to refinance, so know that you will be living in your home for another couple of years in order to recoup the costs.
About the Author:
Mijnadviseur is an institution that gives information about mortgages in English. It also writes articles about laagste hypotheek rente and oversluiten dure hypotheek in Dutch.
posted by Credit Counseling at
2:41 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home