What NOT To Do When Refinancing Your Home Loan
With the low mortgage rates that have become available during this COVID-19 pandemic, many may be thinking it's time to refinance their home loans. It makes sense, why wouldn't you take advantage of these lower rates? With that in mind, there are certain actions you will want to avoid when choosing to refinance your home loan and our mortgage lenders at the Lake of the Ozarks are here to tell you about a few of them in this week's blog. If you have any questions, please do not hesitate to call our mortgage company in Osage Beach today. MHQ - Mortgage Headquarters can be reached at (573) 302-9990. If you are considering refinancing your home loan, our experienced Missouri mortgage lenders can guide you to select the refinance program that can fit your financial situation the best.
DO NOT...
FAIL TO ASK YOUR MORTGAGE LENDER WHAT THE BEST TERM WILL BE.
For most homeowners, refinancing is all about getting a better rate. But it’s also an opportunity to change the length of your loan. Typically, you’ll be able to choose from a 15, 20 or 30-year loan. With a longer loan term, you’ll pay more in interest but your monthly payments will be lower. On the other hand, going with a shorter loan term will save you money on interest and allow you to pay your loan off faster, but your monthly payments will be higher. You need to know which one makes the most sense for your situation.
FORGET TO ASK YOUR MORTGAGE LENDER ABOUT ALL COST ASSOCIATED WITH REFINANCING.
Typically, lowering your monthly payment is the ultimate purpose for refinancing. But it should not be the only factor you weigh. Before you even begin the refinance process, check your current mortgage documents to make sure your loan doesn't contain a penalty if you pay off your mortgage early. Weigh the amount of time you have left on your current mortgage, and factor in the refinance closing costs. Look at all fees when comparing refinance offers. Run the numbers on different scenarios by changing the loan amount, and looking at the cost with and without upfront points.
DO ANYTHING TO LOWER YOUR CREDIT AT THIS TIME.
Just like when you obtain your first mortgage, lenders will check your credit when you apply for a refinance, and they check it again just before settlement. Making major purchases on credit or applying for new credit could lead to delays in the approval process. Every time you open a new credit account, your credit score drops. Lower credit scores translate into higher mortgage rates.
We know how complex refinancing your home loan may seem like sometimes, especially if you have never done it before. We are here to answer ANY questions you may have. We can walk you through this process and make sure you are getting a refinance option that works best for YOU. Give us a call today at the number listed below and get all of your questions about refinancing answered. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
www.MHQMortgage.com
What NOT To Do When Refinancing Your Home Loan
DO NOT...
FAIL TO ASK YOUR MORTGAGE LENDER WHAT THE BEST TERM WILL BE.
For most homeowners, refinancing is all about getting a better rate. But it’s also an opportunity to change the length of your loan. Typically, you’ll be able to choose from a 15, 20 or 30-year loan. With a longer loan term, you’ll pay more in interest but your monthly payments will be lower. On the other hand, going with a shorter loan term will save you money on interest and allow you to pay your loan off faster, but your monthly payments will be higher. You need to know which one makes the most sense for your situation.
FORGET TO ASK YOUR MORTGAGE LENDER ABOUT ALL COST ASSOCIATED WITH REFINANCING.
Typically, lowering your monthly payment is the ultimate purpose for refinancing. But it should not be the only factor you weigh. Before you even begin the refinance process, check your current mortgage documents to make sure your loan doesn't contain a penalty if you pay off your mortgage early. Weigh the amount of time you have left on your current mortgage, and factor in the refinance closing costs. Look at all fees when comparing refinance offers. Run the numbers on different scenarios by changing the loan amount, and looking at the cost with and without upfront points.
DO ANYTHING TO LOWER YOUR CREDIT AT THIS TIME.
Just like when you obtain your first mortgage, lenders will check your credit when you apply for a refinance, and they check it again just before settlement. Making major purchases on credit or applying for new credit could lead to delays in the approval process. Every time you open a new credit account, your credit score drops. Lower credit scores translate into higher mortgage rates.
MHQ - Mortgage Headquarters is Here For All Your Refinancing Needs!
We know how complex refinancing your home loan may seem like sometimes, especially if you have never done it before. We are here to answer ANY questions you may have. We can walk you through this process and make sure you are getting a refinance option that works best for YOU. Give us a call today at the number listed below and get all of your questions about refinancing answered. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
Mortgage Headquarters of Missouri, Inc4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
www.MHQMortgage.com
Comments
Post a Comment