MOVE-IN Ready beach home with large fenced-in backyard in sought after West Belmar! Home features hardwood floors, Hunter Douglas shutters, living room, family or dining room, eat-in kitchen with
The Four Best Questions To Ask Before Refinancing Your Mortgage
1) Do I have enough equity to get a mortgage?
To get a conventional loan, you will usually need to have at least 20 percent equity. This means that your house will have to be worth at least $250,000 to get a $200,000 loan. If you have less equity, you could end up having to pay for private mortgage insurance, which can easily add $100 or more to your monthly payment.
2) How’s my credit?
Most lenders will look at your credit score as a part of determining whether or not to make you a loan. With conventional lenders, your rate will depend on your score and the higher it is, the lower your payment will be. Other lenders, like the FHA and VA programs have an all or nothing rule. If you qualify, your rate won’t be based on your credit, but if your score is too low, you won’t be able to get any loan.
3) What do I want to accomplish?
Mortgages typically offer a choice as to their term. While the 30-year loan is the most popular, shorter term mortgages save you money since you pay less interest over their lives. They also get you out of debt sooner, at least with regard to your house.
The drawback is that they carry higher payments since you pay off more principal every month. This can make them less affordable for some borrowers.
4) How’s my current loan?
If you have an adjustable rate mortgage, you may want to switch to a fixed rate mortgage simply for the additional security it offers you. On the other hand, if you are planning to move relatively soon, your current mortgage could be a better deal whehter it’s fixed- or adjustable-rate.
When trying to decide what to do, compare the cost of refinancing with what it would cost you in additional interest to hold on to your existing loan. While the breakdown is different for every borrower, generally, you’ll need to keep your current house and loan for anywhere from three to six years to break even on the costs of refinancing.
Deciding what to do with your mortgage can be complicated. Working with a qualified loan broker that can consider every angle with you can help you to make a better decision
For More Info Visit: http://www.bondstreetloans.com
Latest Blog Posts
Are you interested in paying less per month on your mortgage? Or perhaps you would prefer if your mortgage was paid off a couple of months – or years – faster? If you are a homeowner with a
2001 built colonial with 3 bedrooms and 3 full baths - Offered at $549,000A huge rocking chair front porch welcomes you. The first floor consists of the living room, dining room and newer kitchen