Refinancing your Mortgage

Choosing the right lender is a key element to managing your mortgage. As a Loan Originator, my goal is not just to provide you with the loan, but also to help you manage that debt over time. A lot of lenders out there don’t provide this type of personalized service. Likewise, many people like to shop rates on the Internet just to see what’s out there. The results can be very misleading, and rate shoppers miss out on the important aspects of having a true consultant help them select a loan program. There are literally thousands of loan programs available. I’m here to help you select the one that is most beneficial for you and your long-term goals. In fact, my job is just beginning when your first loan closes with me. I don’t stop there. I continue to monitor rates on your behalf, and stay in touch with you to make sure we are on target with your future financial security.

When should you Refinance?

When you're making your decision, there are several things in mind.

First, even a small rate cut can pay off quickly. That's because you can opt for a “No Cost” mortgage which doesn’t have the routine refinancing charges such as, credit report, appraisal, underwriting and processing fees (which can add up to $1,000 to $2,500). Of course, in exchange for low or no up-front costs, you'll have to be willing to accept a rate that's somewhat higher than the prevailing rock bottom.  

Second, if you are planning to stay in your home for at least three to five years, it may make sense to pay "points" (a point equals 1% of the loan amount) and closing costs to get the lowest available rate.

And third, calculate a “break-even” for your costs vs. savings.  This can be figured in months and if you plan on staying in the house for longer than the “break-even” point then you’ll be ahead of the game and financially better off.

Consider other Mortgage Programs…

If you are thinking about refinancing your mortgage, you might want to consider other types of mortgages. For example, you might want to look into a 15-year, fixed-rate mortgage. In this plan, your mortgage payments are somewhat higher than a longer-term loan, but you pay substantially less interest over the life of the loan and build equity more quickly. (Of course, this also means you have less interest to deduct on your income tax return.)

You also might want to consider refinancing if you have an adjustable rate mortgage which are fixed for a period of time. This is great for the “move up” home owner who knows that they’ll be in a new home down the road. 

Get your hands on some Cash.

Another way to make a refinance work for you is to refinance for more than the balance remaining on your old mortgage -- in effect, tapping your home equity, or "cashing out," in mortgage speak.  The best use for the extra cash is to pay off any higher-rate loans you may have, such as credit cards, auto loans, or just about anything you’ll need money for.

Start here to get Pre-Approved Online

or with my Mortgage Concierge Program which you can fax back