Friday, November 10, 2017

How To Know If You Should Refinance Your Home Loan

I read an article this morning that VA borrowers are getting hit with refinance options from scoundrel lenders. Really, just them?

Seems like everyone gets offers, all the time, to refinance their mortgage for a better rate.

Small typed notes with asterisks at the bottom of their 'invite' will have stipulations, but there still may be some good, and not so good, reasons to refinance your home loan.


Things to consider when you get one of them and are pondering their offer:

1) How long will you be staying in your home?
2) How much will it cost out of pocket?
3) How many years will it extend your loan?
4) Will your mortgage balance go up if you refi?
5) Is it a reputable lender offer?
6) What's the monthly savings?
7) How long will it take to pay off the cost of the refi by the monthly savings calculator?

Ahhhhh, see? Some questions you may not have thought of. You may just think, wow that interest rate is less than what I have now. 

I have past clients call me all the time about a refi offer they received in the mail. I rattle off these questions, and more, before I have them even consider it.

Most I suggest contacting their current lender. The current holder of mortgage would probably love to keep their loan as that's how they earn money, on the loans interest of course.

But, I also have a few great local lenders that can give you some options as well. One of my clients just save a couple hundy a month. Very happily I might add.

Before you respond to any offer of refinance, consider the questions above. Roll them around in your head, make sure you have your homework done before you call anyone.

Or, just call me.....I'm happy to ask you those very same questions! 

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