How do I know if the time is right to refinance?
Clients choose to refinance for a wide variety of reasons. The simplest way to know if the time is right to refinance is to determine what savings will be available to you every month with a new mortgage and whether this monthly savings brings you significant benefit. Often, refinancing involves paying off higher cost debt and thus reducing overall monthly payments besides achieving lower housing payments, so be sure to have a mortgage professional review your entire debt payment situation, not just your house payment. BACK TO LIST
Should I use a local, licensed mortgage consultant or the Internet?
Most companies providing mortgage assistance via the internet do not depend on repeat or referral business for their success. Therefore, clients that choose them often have a less satisfying experience. Clients may also have last minute increases in their promised rate and payment. Make sure you choose someone that is trustworthy and licensed in your state. A reliable mortgage professional will respond quickly and accurately to your questions. Be certain to get everything in writing !! You should never feel *pressured* to do something quickly. BACK TO LIST
How can I make accurate comparisons of the offers I receive?
- Keep asking questions. Not only will you have a clearer understanding of each offer you've reviewed, but you will also be better able to determine the reliability and trustworthiness of the mortgage professional(s) you are dealing with. Be sure to have them explain the relationship between the "costs" involved with refinancing and the interest rate. "Low cost" or "no cost" options may sound good, but may not be the best choice if they end up costing you more in the long run. BACK TO LIST
Home Purchase Questions
Should I get an Adjustable Rate (ARM) or a Fixed Rate?
Choosing between an ARM and a Fixed rate is a complex question that depends on several factors. Generally, an ARM rate is lower and it can adjust up or down after a set number of years (typically 2,3,5,or 7 yrs). This adjustment is based on market conditions at the time of adjustment. An ARM can be a good choice if it is important to lower the rate as much as possible and/or if you plan on living in your home for less than 4 years.
Fixed rates cannot change and thus provide some comfort to borrowers who are concerned about rates being higher in the future. Be sure to ask your mortgage professional what they recommend in regards to ARM's or Fixed rates after you provide them with details about your financial situation and future plans. BACK TO LIST
Is there a way that I can guarantee my loan will close on time?
Purchase loans often have certain deadlines for closing in order to abide by the terms of the purchase agreement and to facilitate a smooth transition for both the buyer and the seller. While no mortgage professional can provide a rock solid guarantee that your loan will close on time, you should ask them to advise you on any issues that could prevent your loan from closing on time. Make sure that your mortgage professional has a system to keep you updated on the process and that you are convinced they truly do care about meeting your deadlines. BACK TO LIST
I have some challenges in my current financial situation that may prevent me from getting a loan. What should I do?
Many borrowers are surprised that they can find mortgages despite the fact that they have challenges in regards to credit, income, or assets. Your mortgage professional should collect all the details about your individual situation and should then advise you about options that are available. Weakness in one particular area of your personal financial situation rarely prevents you from qualifying for a loan. Ask your mortgage professional about "reduced doc" loans, FHA / VA mortgages, and other special programs that may exist for borrowers that fit your individual profile.
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