Get help with your Decision About Mortgage Refinancing. It always helps to have an outside objective opinion. And remember when you refinance you will get a loan based on your income and your credit score. The better your credit score the better interest rate you will get. And remember the loan is against your income not the value of your house
Check your credit report for any errors that can drive up your interest rate. And realize with these tough economic times a great score years ago will only be a so so score today. Make sure that you contact the reporting agency for anything that looks wrong to your before applying for a loan.
Do you want a variable loan mortgage rate? Some take this because of the low payment for the first six months or year. But this is a teaser rate in some cases because it is sure to go up after then. You do not want to do what many people did and get in trouble when it goes up later.
You may not be prepared to pay the increase payment months from now. Do not count on extra income in the future. Yes you might get a raise but do not count on it. It is better to be sure than sorry later on. Ask yourself if you can afford the payment today if it were an extra two hundred dollars month. If not, then you should reconsider the variable rate option.
But you have to be realistic. You do not want to later on find it difficult if not impossible to pay the higher monthly payment down the road. If you are refinancing your fixed rate loan now that is let us say a thirty year fixed loan realize that you are starting all over again.
And if you take money out with the refinance you are taking the equity out of the home and spending it. This is plain and simple and should be a sobering thought for you. Some people thought that their home would continue to grow in value but instead their home went down in value. This is where so many people got in trouble.
They thought they could actually refinance later and get even more money out of their homes. Using your home as a cash register or ATM is not the prudent thing to do. No one can predict the housing market. Yes real estate goes up typically but there is nothing typical about the current market.
You might have a great need for the money you take out in a refinance. But if you want to use it for a new car or vacation that is up to you. But in any case you need to consult with an independent third party like a financial advisor to make sure you make the right decision. - 30462
Check your credit report for any errors that can drive up your interest rate. And realize with these tough economic times a great score years ago will only be a so so score today. Make sure that you contact the reporting agency for anything that looks wrong to your before applying for a loan.
Do you want a variable loan mortgage rate? Some take this because of the low payment for the first six months or year. But this is a teaser rate in some cases because it is sure to go up after then. You do not want to do what many people did and get in trouble when it goes up later.
You may not be prepared to pay the increase payment months from now. Do not count on extra income in the future. Yes you might get a raise but do not count on it. It is better to be sure than sorry later on. Ask yourself if you can afford the payment today if it were an extra two hundred dollars month. If not, then you should reconsider the variable rate option.
But you have to be realistic. You do not want to later on find it difficult if not impossible to pay the higher monthly payment down the road. If you are refinancing your fixed rate loan now that is let us say a thirty year fixed loan realize that you are starting all over again.
And if you take money out with the refinance you are taking the equity out of the home and spending it. This is plain and simple and should be a sobering thought for you. Some people thought that their home would continue to grow in value but instead their home went down in value. This is where so many people got in trouble.
They thought they could actually refinance later and get even more money out of their homes. Using your home as a cash register or ATM is not the prudent thing to do. No one can predict the housing market. Yes real estate goes up typically but there is nothing typical about the current market.
You might have a great need for the money you take out in a refinance. But if you want to use it for a new car or vacation that is up to you. But in any case you need to consult with an independent third party like a financial advisor to make sure you make the right decision. - 30462
About the Author:
In addition to having less debt by refinancing a mortgage, also look at GIC rates to get higher fixed income returns. Mortgage rates vary from lender to lender so ask around.
No comments:
Post a Comment