Preferred Loan Type

Property Type
  Property Value
Credit Rating
  Don't know your credit rating?
Click HERE to find out now!
Free Quote

Mortgage Refinance Tips to Maximize Low Rates

By

Mortgage refinance guidelines tightened this year, so many homeowners are being rejected by their lender for refinancing.  Just when you think that you have seen the lowest mortgage rates ever, the interest rates get even lower.  Most mortgage executives have indicated they believe the low rates won’t last and that mortgage rates will begin to rise again in 2011. With that being said, it is important to qualify for a mortgage refinance loan, now while the rates for home refinancing are so favorable.  Nationwide loan officers provide home loan refinancing tips at no cost.

Looking for an Affordable Home Refinancing Solution Online?

We outlined the top 3 mortgage refinancing benefits:

1. When refinancing, your new loan should have a mortgage refinance rate at least .5 percentage points less than your present interest rate.

Years ago most financial advisers had recommended mortgage refinancing if you could get a mortgage rate at least 1 percentage point less than your current mortgage.  Well, the rules have changed, because refinance rates in recent years have been at historical lows, so a half point drop makes up a larger percentage of your existing rate.

2. Typically most people refinance into the same type of home loan they started, simply because they do not know any better.  That can be a financial blunder that could cost the borrower thousands of dollars a year.  If you are a few years into a thirty-year mortgage, don’t just refinance into a new mortgage  because you save a little bit of money with a reduced mortgage interest rate. The new mortgage could be stretching out your payments over several more years, so you might not really be saving money. For example, let’s say you only have twenty years left on your existing home mortgage. If you can refinance into a thirty-year home loan you would be adding ten years to your existing mortgage loan. If you have the option to qualify for no cost loans we recommend that you seize the opportunity.

3. Closing costs and lender fees should be recovered within the first 3-5 years or less.  Closing costs factors should be considered before signing the paperwork need to close a loan. You’ve got to make sure the proposed mortgage rate makes sense on paper financially.  Don’t assume that the closing costs are justified.  Many home refinancing loans will see closing costs in the $5,000 to $10,000 range and some have even higher lender fees.

Be Sociable, Share!

Share

4 Comments

1

[…] Mortgage Refinance Tips to Maximize Low Rates | Nationwide Mortgage […]

2

The key issue in home refinancing is the fees. Try and get an accounting of all the various fees upfront. Then crunch the numbers. If the fees are $5,000 and you are only shaving $100 a month off your mortgage payment. Think twice, because it will take you 50 months to cover the $5,000 in fees. Now if you were paying off some credit card debt that cost you $500 a month to service, it’s a different story. You are ahead $600 every month. $500 from the credit cards, plus $100 from the mortgage. You will recoup the fees in a little over 8 months. To summarize you have to look at what you will spend the money on, plus the fees. And No! Half price tickets for a 14 day cruise doesn’t count. – Sue H.

3

Just when you think that you have seen the lowest mortgage rates ever, the interest rates get even lower. When mortgage refinancing, your new loan should have a home refinance rate at least . Wow it is amazing.That can be a financial blunder that could cost the borrower thousands of dollars a year. If you are a few years into a thirty-year mortgage, don’t just refinance into a new mortgage loan because you save a little bit of money with a reduced mortgage interest rate. Thanks- Lisa

4

Does having paid off my 30 yr.mortgage help me to get lower interest rates if I apply for a new mortgage loan (refinancing)?

Leave a Comment