The Basics of Mortgage Refinance - It is a common misconception for homebuyers to believe they don't qualify for or think that mortgage refinancing is a complicated process. Here are basic information a homebuyer should know about Mortgage Refinance:
WHAT IS A REFINANCE?
A mortgage refinance is when a borrower asks for a new mortgage with a new interest rate and new term to either pay off and replace their existing mortgage. It is commonly mistaken as a modification of a loan when in fact, it is a brand new loan.
WHAT ARE THE BENEFITS OF REFINANCING?
A refinance is done to get a lower monthly payment, to make a change in the length or terms, or to get cash out at closing. For example, borrowers with existing mortgage with a higher rate when the interest rates are currently low, they tend to get a refinance so they can pay lower monthly mortgage fees. Or some want to refinance from a 30-year fixed-rate mortgage into a 15-year fixed-rate mortgage.
ARE THERE QUALIFICATIONS I HAVE TO MEET?
Just like any applications, yes. But contrary to the belief that it is a more complex procedure, the qualification is similar to your existing mortgage. The lender will look into your credit score, payment history, debt-to-income ratio, employment and income, assets, and cash available. Others may even have less stricter qualifications depending on the type of loan.
WHAT WILL I NEED TO DO?
Chances are it is a very straightforward procedure if you use the same lender you have your existing mortgage with. The experts will find the right mortgage for you, ask for financial proofs and paperwork, review your qualification and then go to closing. Because of technology, some lenders may not even ask you to visit their physical office.
For more tips on buying a home and finding the right lender, please call Lora Reynolds, Broker/Owner of Indy Homes Realty Group, LLC at 317-496-6291 or visit her website at www.lora.indyhomesforyou.com and start your house hunting. Good Luck!
Author:Lora Reynolds Phone: 317-496-6291 Dated: February 19th 2016 Views: 140 About Lora: ...
View our latest blog posts in your RSS reader. Click here to access.
The buyer/seller and agent relationship is based on trust, shared goals and understanding. We are constantly striving to improve.
One of the ways that we do this is to listen to our clients and to always take their needs/wants into consideration. Our clients always make their own decisions based on all the "homework" we do as well as the expertise that we can bring. We walk them through the process every step of the way and protect their best interest at all times.
We believe that it is our duty and honor to serve our clients with the most valuable service that we can provide.
Fall to do List for Indy Home OwnersFall to do List for Indy Home Owne
"Lora was fantastic! This was our first home buying process. She really knew exactly what to ask for in the offer and for closing. We had no idea and there were several items that we would have never thought of that she did. She was always available to answer questions and help us. I would highly recommend her. hwagoner6, Bought a Single Family home in 2014 for approximately $150K in Greenwood, IN."