November 2019

?’s I Should Ask My MLO About Refinancing

So you’re meeting with your MLO about Refinancing and not sure what to ask? We got you covered! First off, you want to come-in prepared; Knowing everything there is to know about your current Mortgage will give you a leg-up in the conversation. Secondly, the following questions can help you better grasp the Refinancing process: 

1. What kind of ReFi is right for me?

What goals are you trying to achieve? Do you need to pull cash out of your Equity? Perhaps you’re trying to lower your Monthly Mortgage Payments? Perhaps a financial upswing has occurred and you’d like to increase your Monthly Mortgage Payments to get out of debt quicker. There’s a different loan for every one of these scenarios and it’s important to compare. Some of the different loans are as follows:

– Consolidate Debt: Roll of your current monthly loan payments into your mortgage; Allowing one simple monthly payment at the same interest rate while only paying back one loan. In turn, this will help streamline the payback process, save you money and help your credit.

– Refinance with a Cash-Out Option: If you need cash, and you have 20% or more equity built into your home than you can subtract cash from your equity (you can choose to liquify the total amount of equity built up- this is only recommended it REALLY needed- or liquify a lower amount if that’s all you need.)

– Lower your Interest Rate and/or APR: If your credit has gone up, or if there’s an uptick in the market, you may want to look into getting a better rate on a new mortgage (especially if you plan to stay in your current home long-term).

– Get rid of your PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premiums): If you have at least 20% of the equity in your home, you may be able to get rid of your monthly insurance payments by refinancing.

– Change the term of your current loan: If you’d like to adjust your loan term (either shortening or extending the life of your loan) then a refinance may help. 

To learn more, click here.

2. Can I get an estimate?

Before spending a substantial amount of time delving into paperwork, it’s important to inquire about getting an estimate. This may help give you an overall idea as to what you can expect to pay on your Monthly Mortgage Payments and Interest Rates. At Get A Rate, we offer a no credit check quote.

3. What interest rates do you offer?

Taking a closer look at the current market trends, and comparing them against the MLO’s offered rates, can help you gauge whether or not you’re getting a good deal. Also, if you’re interested in “No-Cost” Refinancing, you may want to ask what Mortgage Rates you can expect to pay. At Get A Rate, we offer a Guaranteed Rate Program that may interest you.

4. Does it make sense for me to refinance?

It’s important to make comparisons and really take the time to weigh out the pros & cons; to ensure that Refinancing is right for you at this time. Do you currently have a great Interest Rate (compared to the current market)? Are you comfortable with your Monthly Mortgage Payments? Even if the answer is “Yes.” it doesn’t hurt to take a look.

5. What fees can I expect to pay?

Asking about closing costs, lender fees and inquiring as to what other miscellaneous costs you’ll have to pay out of pocket will give you an idea of how much you’ll have to shell-out at the closing. It is possible to pay a “no-cost’ mortgage by utilizing Lender Credits (exchanging closing costs for a higher monthly interest rate) or, on the other hand, you can pay points (each point is equivalent to 1% of the total mortgage amount) out-of-pocket at closing (making this part of the closing costs) in exchange for a lower monthly interest rate (This may benefit you if plan to stay in your home long-term.).

Good luck meeting with your Mortgage Loan Officer! If you have any more questions or are looking to meet with a professional Mortgage Loan Officer, contact us today. Click here

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