Refinance Tips

December 4, 2009 by  
Filed under Blog, Refinance Tips

Refinance Tips

If it is hard to resist mortgage interest rates under 5% then you are not alone. If you want your home loan refinance program to go smoothly here are the ten tips.

Home Loan Refinance Tip #1: Find out how much equity you have. Calculate the value of your property and find out what the comps are selling in your area for as opposed to what they are listed for through your Realtor. If your neighborhood has a lot of foreclosures then expect that your home value dropped in price, which can affect your home loan refinance. If you have at least 20% equity and proof of income then lenders do home loan refinance unless they don’t do it.


Home Loan Refinance Tip #2: Make sure your credit score and income qualifies you. Lenders have stricter credit and income requirements because of the housing crisis fallout. So make sure your credit score and income qualifies. Even before entering the home loan refinance process check your credit and debt-to-income ratio is in order.

Home Loan Refinance Tip #3: Prioritize your home loan refinance goals. Whether you want to decrease your monthly payments or decrease your loan term, you have to figure out that first to make sure you meet your goals with your home loan refinance.

Home Loan Refinance Tip #4: Even though if you are under water with your mortgage don’t assume that you can’t get home loan refinance. Even if your property’s value is less than what you owe on it, it is still possible to get a home loan refinance. If f you have a mortgage that is owned or securitized by Fannie Mae or Freddie Mac, you might still be able to qualify for home loan refinance. Some federal programs allow of getting a home loan refinance even if your mortgage is 125% of your home’s value.

Home Loan Refinance Tip #5: Don’t assume you can’t get a home loan refinance if you are unemployed. Many are assuming that if they don’t have a job then they can’t get home loan refinance. If you can relate, no documentation loans are one option. Wallet Pop has written about how to manage the home loan refinance question as an unemployed person here.

Home Loan Refinance Tip #6: Just don’t satisfy with the first home loan refinance you see. Shop for the best home loan refinance, since home loan refinance fees vary widely. So you shop for the best home loan refinance.

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Home Loan Refinance Tip #7: Lower interest rates and fees are often charged by nonprofit credit unions than traditional banks.

Home Loan Refinance Tip #8: Check out that your existing mortgage involves a prepayment penalty if you get a home loan refinance. If you do have to pay fees that equal the amount you saved, then obviously, it doesn’t make sense to proceed with the home loan refinance.

Home Loan Refinance Tip #9: Be careful about getting a home loan refinance to pay off debts or to make purchases. We’ve all seen the aftermath of the home-loan-refinance-as-ATM mentality, so think twice about whether your motivations for getting a home loan refinance are reasonable. You don’t want to use a home loan refinance to consolidate debts so you can afford your dream vacation or dream car, but you can, with caution, make an argument for using a home loan refinance to make home improvements, if those renovations or remodeling projects will give you a bigger return on your investment than what they cost.

Home Loan Refinance Tip #10: Patience is first with the home loan refinance. Due to the home loan refinance requests spurred by the low interest rates, some lenders may take 90 days or more to process a home loan refinance.

Housing Assist Coldwellbanker