MHQ - Mortgage HeadQuarters

Refinancing a mortgage can have many benefits, such as a lower interest rate and monthly payment, refinancing from an adjustable rate mortgage to a fixed rate mortgage, or reducing your term to pay off your mortgage faster. But staying in your current mortgage may be a better option if the costs of refinancing outweigh the savings. Does the thought of refinancing put a bad taste in your mouth because of the negative things you've heard from friends or family? One thing to remember is that whether or not a mortgage refinance is right for you depends more on individual circumstances than this week's mortgage interest rates or your neighbor's past experience. What perceptions might be keeping you from saving money with a refinance? "I've read that the rate needs to be 1% or 2% lower than my current one."   When average loan amounts were much lower, it took a much bigger drop in rates to achieve tangible savings. Today, even small rate differences can ...

One of the best parts about owning a home is the equity that you built up over time. This provides value and security to your future that other investments simply can't. You may come to a point in your life where you may want to take advantage of  refinancing your mortgage  to lower your payments or to take advantage of a lower interest rate. One thing to remember, though, is that refinancing still has it's approval process just like an original loan. Here are 5 common refinancing mistakes to avoid to ensure a smooth refinancing process: 1. Not Doing Your Homework You may just be thinking about going with your current mortgage lender to refinance your home because of the convenience factor. However, if you’re planning to contact your current lender about refinancing without doing some comparison shopping first you could be selling yourself short. With rates still relatively low across the board, it may seem like a waste of time to shop around. But it could mean a huge di...

Are you considering refinancing your home ? With the current relatively low mortgage interest rates, now may be the perfect time to refinance your home. Before you decide whether to refinance or not, there are some things you should consider. Here are a few basics to know before closing on your refinance : Your “payoff amount” is always higher than your remaining principal balance.  Your balance is the amount of remaining principal owed. Your payoff amount is the balance plus prorated interest from the last payment received until the loan is actually paid off. The funding date is usually different from the closing date.  The government mandates a three-day rescission period for refinances of primary residences. Loan payoffs will not occur until the fourth business day post-closing. This will affect the payoff amount, the final payment date and the release of any cash. Do you actually get to skip a payment?  It seems that way because your first regular paym...

Are you considering refinancing your home? With the current relativity low mortgage interest rates, now may be the perfect time to refinance your home. Before you decide whether to refinance or not, there are some questions you should ask yourself before you start the process. MHQ Mortgage HeadQuarters has put together a list of five helpful questions to ask yourself before refinancing your home.  1. How Much Equity Do You Have in Your Home? Typically, homeowners need to have 20% equity established in their home to avoid paying private mortgage insurance. Private mortgage insurance is what lenders require if you take a mortgage or refinance without having a 20% down payment or equity. PMI is what protects the lender if the borrower defaults on their loan.  If you do not have 20% equity in your home, it might not be a good time to refinance. If your goal of refinancing is to lower your monthly payment, it might be counterproductive if you are required to pay perso...