Still a Good Time to Refinance or Get a New Mortgage?

Although the economy is still sour and will continue to remain in this state for some time now, there are beacons of hope for those who wish to reduce current home mortgage payments by refinancing or for those who are seeking a new home loan.

Rates are at historical lows and make it very attractive for a homeowner to refinance an existing mortgage or for those seeking to buy a home. In our opinion, home prices are fairly well bottomed out, as well as interest rates - if you have the financial wherewith all, by all means, now is a very good time to act. Here are some things to consider before acting:

1.) Make sure you plan to be in your home for at least another 5-7 years. Also, remember closing costs, for example, closing costs on a $200,000 loan is an average of $3,118, which does not include taxes, insurance, and any prepaid items like homeowners association dues. Keep closing costs in mind and ask the bank if they can suggest options to help you.

2.) Get pre-qualified by a few banks to ensure that you are financially fit to handle the new loan. Understand all your options first; as the economy slowly heals, banks will begin extending options that could be suitable for you, given your current financial situation.

3.) If your goal is to extend the mortgage as well as get a lower interest rate, then realize that you may end up paying more in interest over the life of the loan.

4.) Refinancing can be helpful if you desire to get out of an adjustable-rate mortgage, interest-only mortgage, piggyback mortgage, or other burdensome mortgage provisions. Refinancing in these cases are a very good option.

5.) Listen very carefully and request all the programs you are qualified for even though you might not be interested in them once they are explained to you.

6.) Getting qualified is a relatively simple process and your Loan Consultant can help you every step of the way. Make sure you always keep good real estate and financial records available regarding past mortgages and income taxes. This will save you considerable time when you go through the process.

7.) Always ask for a Good Faith Estimate (GFE) and a Truth In Lending documents (TIL) These documents will tell you the cost of the loan and what you have to pay for getting the mortgage loan. Make sure you get an explanation of these fees and points. Many are tax deductible on your income tax returns; quite valuable.

8.) Remember not asking questions can cost you money in the future so ask as many as you want to include the ones that don't make sense.

9.) Make sure you contact your tax consultant about any tax matters.

10.) Before signing your loan docs make sure you have gone over the program you are qualified for. Your mortgage loan docs should be exactly as your loan consultant explained to you as to the interest rate, terms of the loan, monthly payments, if it is an adjustable or fixed rate mortgage.

If the mortgage loan docs are not as you were told they would be, please don't sign the docs, but in the case you do, on refinance mortgage you have a three (3) day right of rescission. Ask your loan consultant about your rights and all options involved. A good loan consultant like those at Financial Equities Mortgage Bankers are seasoned professional who take their jobs seriously and want to ensure you are in the right loan, for the right reasons. This is how Financial Equities Mortgage Bankers have been able to build long term relationships with clients for over 20 years.

Get pre-qualified right now by going to www.lowratealert.com and take advantage of the low rates and your great timing.