SHOULD I REFINANCE?
NOW MAY BE THE RIGHT TIME TO REFINANCE Y)OUR HOME MORTGAGE. CONSIDER WHAT REFINANCING COULD DO FOR YOU WHILE INTEREST RATES ARE LOW:
CONVERT AN ARM TO A LOW FIXED RATE: MANY BUYERS FINANCED THEIR HOME WITH AN ADJUSTABLE RATE MORTGAGE (ARM). WHY HASSLE WITH PAYMENT ADJUSTMENTS OR WORRY ABOUT RISING HOUSE PAYMENTS IN THE YEARS TO COME WHEN YOU CAN LOCK IN ON A LOW, FIXED RATE MORTGAGE NOW?
LOWER YOUR MORTGAGE PAYMENT: LOWERING YOUR INTEREST RATE CAN MAKE A BIG DIFFERENCE IN YOUR MONTHLY MORTGAGE PAYMENT, AND SAVE THOUSANDS OF DOLLARS IN INTEREST OVER THE LIFE OF THE LOAN.
PAY OFF YOUR MORTGAGE SOONER: BY LOWERING YOUR INTEREST RATE, YOU MAY BE ABLE TO SHORTEN THE TERM OF YOUR MORTGAGE, POSSIBLY WITHOUT AN INCREASE IN YOUR PAYMENT. IMAGINE HAVING THE MORTGAGE PAID OFF BEFORE THE KIDS ARE IN COLLEGE, OR BEFORE YOU RETIRE!
GET EXTRA CASH: IF YOU'VE LIVED IN YOUR HOME FOR SEVERAL YEARS, YOU MAY HAVE BUILT UP SIGNIFICANT EQUITY. YOU MAY BE ABLE TO REFINANCE, AND USE THE CASH TO PAY OFF OTHER DEBTS, PAY UNEXPECTED EXPENSES, TAKE A VACATION, REMODEL YOUR HOME, AND MORE!
IN ADDITION, REFINANCING YOUR MORTGAGE MAY GIVE YOU SIGNIFICANT TAX ADVANTAGES. CONSULT YOUR TAX ADVISOR FOR MORE DETAILS.
WHAT IS AN "ARM"?
THESE ADJUSTABLE RATE MORTGAGES GENERALLY BEGIN WITH AN INTEREST RATE 1 TO 3 PERCENT BELOW A COMPARABLE FIXED RATE MORTGAGE, WHICH COULD ALLOW YOU TO BUY A MORE EXPENSIVE HOME. HOWEVER AFTER AN INITIAL PAYMENT PERIOD ( USUALLY 1, 3, 5, 7, OR 10 YEARS ) THE INTEREST RATE IS SUBJECT TO REVIEW AND YOUR PAYMENT CAN GO UP OR DOWN BASED ON THE MOVEMENT OF A SPECIFIED " INDEX ". IF IT IS IMPORTANT TO KEEP YOUR PAYMENT AS LOW AS POSSIBLE THE FIRST FEW YEARS, MAYBE YOU SHOULD ASK US ABOUT AN ARM, WE HAVE SEVERAL VARIATIONS AVAILABLE.
HOW DO I CHOOSE THE RIGHT MORTGAGE PROGRAM?
THERE ISN'T A SINGLE OR SIMPLE ANSWER TO THIS QUESTION. THE RIGHT TYPE OF MORTGAGE FOR YOU DEPENDS ON SEVERAL DIFFERENT FACTORS:
(1) YOUR CURRENT FINANCIAL PICTURE.
(2) HOW YOU EXPECT YOUR FINANCES TO CHANGE.
(3) HOW LONG YOU INTEND TO KEEP THE HOUSE.
(4) HOW COMFORTABLE YOU ARE WITH A CHANGING MORTGAGE PAYMENT. FOR EXAMPLE, A 15 YEAR FIXED RATE MORTGAGE CAN SAVE YOU SEVERAL THOUSANDS OF DOLLARS IN INTEREST PAYMENTS, BUT YOUR MONTHLY PAYMENTS WILL BE HIGHER. AN ADJUSTABLE RATE MORTGAGE MAY GET YOU STARTED WITH LOWER PAYMENTS, BUT YOUR PAYMENTS COULD GET HIGHER WHEN THE INTEREST RATE CHANGES.
THE BEST WAY TO FIND THE RIGHT ANSWER IS TO DISCUSS YOUR FINANCES, YOUR PLANS AND FINANCIAL PROSPECTS, AND YOUR DESIRES WITH US SO WE CAN FIND A PROGRAM THAT IS RIGHT FOR YOU.
WHAT IS PMI ?
PMI OR PRIVATE MORTGAGE INSURANCE IS NORMALLY REQUIRED WHEN YOU BUY A HOUSE WITH LESS THAN 20% DOWN. MORTGAGE INSURANCE IS A TYPE OF GUARANTEE THAT HELPS PROTECT LENDERS AGAINST THE COSTS OF FORECLOSURE. THIS INSURANCE IS PROVIDED BY PRIVATE MORTGAGE INSURANCE COMPANIES. IT ENABLES LENDERS TO ACCEPT LOWER DOWN PAYMENTS THAN THEY NORMALLY WOULD. THEREFORE, WITHOUT PMI, MOST BUYERS WOULD NOT BE ABLE TO BUY A HOME WITHOUT A 20% DOWN PAYMENT.
HOW DO I PRE-QUALIFY ?
ONE OF THE FIRST STEPS TO TAKE WHEN LOOKING FOR A NEW HOME IS TO DETERMINE HOW MUCH MONEY YOU CAN QUALIFY FOR . THE BEST WAY TO DO THIS IS TO GET PRE-QUALIFIED. GETTING PRE-QUALIFIED HAS MANY ADVANTAGES:
(1) IT LETS YOU KNOW WHAT PRICE RANGE OF A HOUSE YOU CAN AFFORD.
(2) MANY REAL ESTATE AGENT REQUIRE YOU TO HAVE A PRE-QUALIFICATION LETTER BEFORE THEY WILL SHOW YOU A HOME AND/OR LET YOU PLACE AN OFFER ON A HOUSE.
(3) HAVING A PRE-QUALIFICATION LETTER PRESENTS YOU AS A SERIOUS BUYER WHEN YOU MAKE AN OFFER ON A HOUSE. TO GET PREQUALIFIED (AND GET A PRE-QUALIFICATION LETTER ) AT NO COST TO YOU GO TO OUR LOAN APPLICATION, FILL IT OUT AND SUBMIT OR IF YOU PREFER GIVE US A CALL AT ONE OF OUR NUMBERS LISTED BELOW.
