How Get the Go Signal for Mortgage Refinancing
Posted on March 15, 2010 in the mortgage refinance category
How Get the Go Signal for Mortgage Refinancing
You hear all the talk about mortgage refinancing. You hear about people who have done it, then you get to hear from people you actually know who have done it. It seems to be the boom nowadays and you ask, why wouldn’t it work for you?
You start to wonder if it could help in your present financial worries. You ask questions, you research and you compare rates. You go to your mortgage company, consult a lender and wait for his appraisal.
Then you hear advice: it’s not for you.
Well, what do you do? How can you be eligible for mortgage refinancing? The truth is there are some simple steps can raise your chances of getting a good mortgage refinancing deal. Your lender may not discuss it with you, but come back to him after doing a couple of these steps and the story may be different.
These points tell you what to do so that you can turn it around. These steps will make you ready for refinancing.
Raise your equity to at least 10%PRCTG%
It is essential that you have enough home equity in order to be approved for mortgage refinancing. Build at least 10%PRCTG% in home equity. If your home equity is low, few, will approve you for refinancing. In some cases, you may even have to pay set amount of money in order to reach a favorable threshold, giving you the go signal to refinance.
Get a 2%PRCTG% interest rate.
Home refinance will work if you can get an interest rate that is 2%PRCTG% lower than the interest of your current loan.
There is a good reason behind this rule: the savings on this interest will help you cover the up front costs you will eventually have to shell out in getting a new loan. The up front costs are usually high in getting a new loan with lower rates and longer term, so they should be in your calculations.
Check your plans for the future and see if you will break even with the costs in the duration of the term. If you find that you will be staying with your current mortgage much longer, then so much the better.
Settle late payments now.
Most lenders out there have a 12-month rule: they are more likely to approve your application for mortgage refinancing if you have no late payments for the past 12 months. They do this to assess your credibility and commitment as a borrower.
So check out your payment status now. You might discover that you are only a few payments off from being approved.
Improve your credit score
Study your credit reports for any negative items like wrong details and late payments. Dispute what you can and get your credit report up. You will be surprised what checking your reports and talking to your credit companies can do.
You will not get that low rate if you have not paid off any of that debt. Some may offer you a refinancing deal regardless of your bad credit standing, but it’s possible that they will charge you higher fees and interests.
Only when you have done these steps should you reconsider mortgage refinancing. They may be small steps, but you will be surprised with the improvement they would do for you in getting a good rate from lenders.
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140 Responses to “How Get the Go Signal for Mortgage Refinancing”
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Refinancing your mortgage could be a worthwhile thing to do, if you can manage your finances. I know people who used refinancing to invest in real estate and now they are burning with the current economic down turn. The problem is that the prospect of wealth sometimes clouds human judgement. If you do the research, check the risks and think with your head you should be fine.
Good advice for those thinking of a refinance! Good advice for any planned encounter with a bank!
It’s definitely worth pursuing, even if at first it might seem to be a difficult task to undertake. Such are the obligations of being a homeowner.
Thanks for the article…question: are there mortgage lenders that are more open to refi and settlement than others? I’m with Bank of America now and they are being very difficult to work with. They offered me a “workout” which had an identical rate to what i was paying now! No savings at all, I don’t see what they are trying to offer.
For people who have those high interst rates, refi could save them lots of money. Most of the people that I find need to refi cant becasue of credit issues.
There are also some additional options, that are currently being offered with the home affordable refinance program, that may also help.
I have helped many of my clients qualify for Michigan refinancing loans with less than 10% equity.
If you plan to own your home for a long time, it always makes sense to keep an eye on the mortgage market and take advantage when you can.
James Mucci
Thank you so much for this advice. I love this site. I am learning alot about owning my house.
This is great, now that supply is high and demand is low I am able to get a fair interest rate. You will have to find a hungry refinancer and there are plenty out there!
Thanks for the info, very helpful as this is exactly what I’m doing. Glad I found this post before I took any actionable steps.
Thanks for the great information. I have been trying to refinance, have run into many obstacles along the way, but finally think I have made some headway with some new programs being offered.
This steps will help you in the long run!
Thank you so much for this post. I was looking for this exact information about mortgage refinances.
Thanks for the advice! We have been thinking about refinancing.
Great advice!! This site has great information. Thanks for sharing.
I just got my mortgage a couple weeks ago and I wish I knew this information. Thanks for the great post!
Great article,on mortgage refinancing, to encourage home buyers.
There is an easier calculation to determine if refinancing is appropriate for your situation.
If the total cost of the refinance can be justified through monthly savings in less than 3 years, it is probably worth doing. Example: If the total cost of the refinance is $4000 and the monthly savings are $75 over your current payment, it would take 53 months (4 1/2 years) of savings to offset the cost. If, however, the cost was $4000 and the monthly savings were $150, you would recuperate the costs in 26 months (2 years).
Since the nationwide average is that home owners sell every 5 to 7 years, and refinance every 3.5 to 5 years, sticking to this rule of thumb will give you a benchmark for making the right decision.
Great… it is really helpful. This post introduce me how the simple way of getting the sense of Mortgage Refinancing. Thank you
I found with my refinance the initial advise was not good. We went to a mortgage broker for a second opinion and our home was refinanced, payment lowered and interest rate 1.25% less! Get a second opinion.
I wish I had known this before I recently tried to refinance… especially about raising my equity. It makes sense NOW, but I didn’t think about it before
Good article. Not many people have enough equity to qualify these days.
I enjoy checking in daily to see your musings. I have your page bookmarked on my favorite read list! You have got the point across much better than I ever might. You prepared a number fine points there. I did a good solid research for this particular issue and found out generally people will definitely agree with your website. I think your blog is interesting, keep us posting. Thanks.
Mortgage refinancing is a good way on how to earn good credits and seeking good deal rates from your lenders. I really admire people writing about this topics for public information. Keep it up!
Quite good ways to improve mortgage refinancing, but you have to work rather hard to seak them. Increasing equity its fairly uneasy thing, you have evertythin plan step by step if you want to reach eat. However if you are determined to sacrifice you can try it.
Totally agree, you probably can refinance even with a poor credit rating, however, you will more likely be offered rates that you need to consider careful as they will be a lot higher.
Some very good points. Most people are not aware of what it takes to be refinanced (specially as lenders are not in the habit of explaining WHY an application was denied). Very good/useful information.
Sadly many have gotten caught up in the depreciating home market. As home prices drop homeowners are finding themselves in a quandary…stay put and hope home prices increase or sell at a loss.
That is a very helpful post about mortgage refinancing. I agree with the steps that should be taken before considering it
I heard that mortgage refinancing knows a boom for the moment. Thank you for the tipps. I think it needs a bit time to realise your steps.
Hey – I think you have a typo in your title.. shouldn’t it be “How To Get ….”
Just letting you know – nice article too.
Cheers
cool your writing is very helpful. thanks a lot.
Regarding the settlement of late payments, how do you see the recent financial distress affecting those who sold homes via short sales and were forced into rental properties? Some lenders have in the past accepted statements from landlords, but I am unsure if this practice will be allowed moving forward.
I like this information. thank you
nice article .. very help to me
I cringe if you must get the funds to mortgage our assets from the main dwelling house, what if one time we have been hard to restore the funds that we borrow, should we lose our homes? This may be one of my stupid questions
Fantastic information, so many home owners just do not realize that they can do so much better when they prepare in advance for a refi
Excellent post, I think the most important point you make is rehabbing your credit score so you can get a better interest rate, of course this takes planning
Excellent post about refinancing your home.
Good article thanks!
I am always afraid on the subject of “refinancing” your mortgage.
Simply put, refinancing is still making you in debt. Sometimes, the debt it more.
For me, refinancing is fine as long as the extra cash out is for investment purposes.
I think mortgage refinancing can sometimes save money but many mortgage companies will charge a fee which would effectively add an extra 1% to the first years mortgage interest, so watch out for that.
Great tips here John. Most consumers out there don’t realize when you try and get a loan modification you must have the income level and credit score of getting approved for a loan. These steps will help you move in the right direction.
nice info..thanks
Thx for this nice article. But i am always afraid of to much debts.
As tough as the mortgage market is today, there is mortgage refinancing available. You have to look harder and work smarter. And be prepared for a long drawn out process that could take 4 to 5 weeks.
The key is preparation. First, find out how much your house is worth. A reputable realtor can give you a letter of opinion, or you can get a full appraisal. Second, order your credit reports. What’s in the report will help you decide which lenders to approach. Third, find out how much you owe on the house. Talk to the mortgage servicer. And fourth, get all your documents together. These should include the last 2 years tax returns, the last 3 paystubs, the last 3 months bank statements and a job letter.
These are great tips! In this changing mortgage climate, many banks stopped doing home equity loans and refinancing; however, that market is slowly coming back in different parts of the country. Being prepared is key, but also don’t give up. Find out what needs to be corrected, do the correction, and then ask for the loan again. Be persistent. Our team is always advising our clients to get the pre-approval as early in the home buying process as possible. And remember, a “no” simply gets you one step closer to that “yes”. Thank you again for these tips.
nice to articel..thank’s for info
Plans for the future are a huge factor in figuring out when to refinance. How long do you want to stay in the same location? Where are your kids going to be in 5 years?
Wooa, that was something i had a lot of questions about and you post just clarified everything… thanks alot. i got here by doing a google search…
Thanks alot and congratulations for the nice website!
Dominique.
Thanks for the advice!! You have definitely reminded me of what to keep in mind while refinancing my mortgage.
nice info..thanks!!
thats good article,very nice. . .
hi from mas raden
thanks for sharing about Mortgage Refinancing. Certainly, it is very helpful.
good advice. thanks for the information. I finally find out Mortgage Refinancing
Great Article. I agree, doing the above steps does really help so you could get your mortgage refinanced. Following smalls steps does really help you. Specially your credit score. If your a valued payer that always pay on time, thats one of the things that could get your mortgage refinancing successful. And there are also programs offered in some ways which also could be the alternatives.
Refinancing is a great venture to undertake even at these times — note the higher interest rates. However, it should be noted that it will take a lot of hardwork and a lot more obstacles will be hurdled. More so if the right formulas are not put in place. I should know, I’ve seen my own money down the drain
Doubt whether Indian Property can be helped with Refinancing model
Take all advice with a grain of salt. Do your due diligence yourself.
Gwen
Thanks, was a good article.
Thnk yu
thanyyuuuuuu
Its been good to see some new lending products hitting the market that are helping a few more folks be able to refi. Here in Hilton Head Island the options for refi were few and far between for a while there.
Just found your post- read it and like your content. I’m a new agent and this really helps me a lot. I look forward to future posts.
Good advice for those thinking of a refinance!
Really good info. Anyone who isnt underwater should consider themselves luck and take advantage of the historic opportunity that interest rates are presenting themselves. Good notes youve given and I hope more people see that not only is now a good time to refi but buy as well!
Thank you so much for this advice
Good advice for those thinking .
I was planning for refinancing but i have not much information about this.Thanks a lot for sharing such an important points with us.I am really not aware of all this.This is very much helpful for all the Investors.
it can be a good idea if you know how to be organized with your money, at this time I am seeing a lot of people hurting from refinancing because they did not know how to control their expenses.
nice post,
we must use right strategy for that
Good Post.. we want more
thenk you,
If you plan to own your home for a long time, it always makes sense to keep an eye on the mortgage market and take advantage when you can.
thanks for sharing!
some people who have those high interest rates, refi could save them lots of money.
Now is also a good time to refinance to take advantage of the low rates which in the end can save homeowners thousands and thousands of dollars. Great post, thanks for the info!!
Thanks for your good advice & I think it is really work very well.
For sure future home buyers will like the every tips and steps that you’ve been written in this post. A difficult task to be pursue, but a rewarding one in the end.
Good advices, thx
There are plenty of refinancers out there ready to pounce on people needing refinancing. Just make sure you know what you are getting into before it’s too late!!!I love the info you posted, very useful and informative!!!
I really liked your site. have a very nice design. I wish you success.Design looks very nice. Such a site would like to thank you for bringing us.Reply
Thanks for sharing. Mortgage refinancing can be an intimidating subject for any homeowner.
Thanks so… it really suitable for me… this article tell me what to do. These steps will make me more strong and finance. there is the interesting one, Get a 2%PRCTG% interest rate, that gonna help to cover the up front costs I will eventually have to shell out in getting a new loan. I just know it… great info…
thanks for sharing this helpful information. but me and my hubby was trying hard to avoid any mortgage and credit card also. thanks for sharing
Great advice guys!! Thanks alot.
I wish I had read this a couple weeks ago. It would have made all the difference for my application. Now I know better and will be prepared for next month’s appointment with my lender. Thnx for the advice.
Wow, there are so many things going on, from managing credit scores to underwater borrowers, etc. There are a couple of really cool programs available if either Fannie or Freddie own you loan.
Applying for mortgage refinancing could be so frustrating an stressful, especially if you have a difficult lender to deal with.
We’re filing for loan modification with Bank of America, after being tossed around for about 6 months finally they transferred our loan to another company and we have to start it over from scratch!
Now we’ve been thinking to have a short sale on the property.
Thank you so much for this advice. I love this site.
I came across this site as we are currently looking for some information on some laymen terms of Mortgage Refinancing for a client of ours – though it’s slightly different to the laws we have over here in NZ. Would be interested to hear from anyone who has similar outlines for this area of Law in the NZ law system.
In some cases, you may even have to pay set amount of money in order to reach a favorable threshold, giving you the go signal to refinance.
Good advice! I am thinking about it.Your information really help me. I hope I can work it out. Thank you! Happy everyday!
very thanks for your informative post I have bookmarked this page..
Looking for a resource for a friend in Florida; he’s going into a Lease Option and needs the paperwork (the existing mortgage, the title, and the lease) looked over by someone who knows what they’re looking at.
thank you for this article and also the information.
and I will use this advice later
The up front costs are usually high in getting a new loan with lower rates and longer term, so they should be in your calculations.
Thanks man, your information is useful for me.
Right now is the best time to get a home refinance you writing this is great. People if you do want to refinance make sure your credit is great and you
Great deal! Refinancing is one of my problems because of its interest but now, this would not be a hindrance for me to have my own. One of the reason is we have this new programs that offers more suitable for us.
I’ve been having a really hard time making my mortgage payments on time. It is due on the first and I don’t typically get paid til the 3rd.
Sadly, I am living paycheck to paycheck and am having a really hard time. I have been late every month for the past 9 months.
I was recently told that I can call my mortgage company and have them change the due date. I think I will see if I can do that.
Unfortunately there are still some unethical people in the mortgage business ….watch out and know who you’re dealing with.
very informative. Now, i know what to do.
First of all thinks for sharing the post. Most of the times while I use to understand the terms of mortgage refinancing I simply got confused. But reading your blog clears my queries to a great extent. But, its not that easy to do it. I am looking forward to your further post.
Good article. Many people just don’t think through all the numbers. Just because the rate is lower than what they have (and if they bought in the last few years, they already have a historically low rate) doesn’t mean it makes financial sense to refi.
I get questions about refinancing from clients and former clients all the time. How can you find out which lenders are more lenient on refi’s and which are more strict?
Pretty cool information. Its a nice website with a cool postings as well. I like the stuff on it, Thanks.
you don’t get many mortgage settlements in the uk it would be a good idea, put its mainly the banks that offer the mortgage
i wanna looking looking for something
I’m not too keen about refinancing. I have heard both the good and downside about it. It’s a smart move to be thoroughly researching about something. This one certainly helps.
awesome post
Nice content.Credit is one of the important factor in financial management and essential for your business growth.this is so much valuable post.
To protect mortgage refining mistake is a simple way you need money which you are not bothering in coming days,real deal in mortgage refining in today’s date is meeting ups with the obligations.
But obvious question as closing transaction fees and the fee’s should be less then savings,shorter rate of fixed rate,if you are having proper solution for this question then have no problems and will run on.
Mortgage refinancing really makes sense given all the conditions are right..
thanks for sharing this helpful information. but me and my hubby was trying hard to avoid any mortgage and credit card also. thanks for sharing
Fine publish, I gonna bookmark this sheet. Appreciation pro info…
Interesting take on this issue. I for one have seen quite a few twists on this and can usually spot the holes inside the arguement on the other hand, on this occasion I belelive your writing is such that every person must be in agreement with this. Thank you for sharing it with us.
Great advice guys!! Thanks alot.
very informative. Now, i know what to do.
Thanks man, your information is useful for me.
For people who have those high interst rates, refi could save them lots of money. Most of the people that I find need to refi cant becasue of credit issues.
Pretty cool information. Its a nice website with a cool postings as well. I like the stuff on it, Thanks.
Thanks. It certainly require some thought and math. Take the time homeowners!!
It’s a great deal for the people who have high interest rates and a good job and good credit. Appraisals have kept some from re-financing. They seem to be coming in low these days.
I believe what factors into if a refinance is feasible is by taking the cost incurred by doing the refinance and seeing how long it takes you to recoup this monthly with the monthly savings you are receiving from the refinance. Depending on your goals with how long you are going to stay in your home will determine if the refinance is feasible. As an example….if it takes you 3 years to recoup the cost of the refinance and you are planning on moving in 3 years, you would not recoup and gain the benefits of your monthly savings. It would make more since to just keep those funds in an interest bearing account as you would be better off in the long run. Now the costs many not make a difference if you are trying to get into a fix from an arm to give you peace of mind.
Good information. Refinances are in high demand right now with the interest rates as low as they are. People need to get good information from the lender to decide if it is a good move for them. Sometimes it is not right for a client to refinance.
Refinancing your home mortgage could save you lots of money on your monthly payment. Make sure that the payment savings will outweigh the closing costs. With a FHA Streamline Refinance you can close your loan in 8 days! Take the time to see if refinancing is a good option for you.
Before deciding about refinancing, you need to consider whether the timing and circumstances make this the right time to get a new mortgage.
Good advice for those thinking of a refinance!some people who have those high interest rates, refi could save them lots of money.Thanks a lot.
Nice info on how to refinance your way out of foreclosure. Something on the lines of continuing this article is stop foreclosure refinance
Another factor that can help you in deciding if its time for you to refinance or not is to see if the interest rates in the market has dropped. You can shop around for the best deals and compare interest rates.
thanks for a good information…sir..!!
Gathering information about market trends is also important..
To refinance or not to refinance is the question. It is not for everyone, though it should be explored by everyone to find out how it may benefit them and their financial situation.
Keith
Good advice for those thinking of a refinance!some people who have those high interest rates, refi could save them lots of money.Thanks a lot.
thanks for a good information
Nice sharing and also there is a major goal of this rule: the financial savings in this interest will help cover the entry fee until you finally have to pay to get a new loan. input costs are generally high in the acquisition of a new mortgage with lower rates and longer term, so they need to be with their calculations.
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Now I know better and will be prepared for next month’s appointment with my lender. Thnx for the advice.
In these uncertain economic times I believe that re-financing is a risky option. Maybe i´m too conservative though!
His article is very helpful, Thank You Buddy
Nice Article. thank for share
Howdy, I actually love reading through your posts, thank you for the truly great post!