Mortgage Refinance Tips & Tricks
The interest rates are low, so mortgage refinancing is looking good. Getting your mortgage refinanced at the right time can save you a lot of money. Because of the mortgage crisis, the lending criteria are getting pretty strict. It's not as easy as before to get accepted for a mortgage refinance.
If you take the trouble to prepare, you increase your chances of acceptance by a lender. In this article we will go over a few things you need to know before sending in your application for a refinance.
Home prices are getting lower by the day. This, coupled with the increase in inventory on the housing market, lowers the amount of equity you have in your house. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy. When an appraiser comes by, he will always make an appraisal of the value in today's housing market, not the housing market as it used to be.
The government recently announced plans for helping homeowners that are in a negative equity situation. Exact details of these plans have not yet been unveiled, but will be available shortly.
A bank also looks at your income. If you can't show you have sufficient income to do a refinance, you will not be accepted. There are many spots on the Internet where you can check what you approximately can get when applying for a mortgage. Make sure you have sufficient income before going through the trouble of a refinance.
Your credit score is also important. If you have very bad credit, it's not easy getting accepted for any loan or even a credit card. You will also be paying more than the average person with an average credit. If possible, try to improve your credit score before applying for a mortgage refinance.
When considering a mortgage refinance, always look at the total costs of this decision. You have to know if the refinance is worth it. You will face some added costs when you decide to refinance, so know that you will be living in your home for another couple of years in order to recoup the costs.
If you take the trouble to prepare, you increase your chances of acceptance by a lender. In this article we will go over a few things you need to know before sending in your application for a refinance.
Home prices are getting lower by the day. This, coupled with the increase in inventory on the housing market, lowers the amount of equity you have in your house. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy. When an appraiser comes by, he will always make an appraisal of the value in today's housing market, not the housing market as it used to be.
The government recently announced plans for helping homeowners that are in a negative equity situation. Exact details of these plans have not yet been unveiled, but will be available shortly.
A bank also looks at your income. If you can't show you have sufficient income to do a refinance, you will not be accepted. There are many spots on the Internet where you can check what you approximately can get when applying for a mortgage. Make sure you have sufficient income before going through the trouble of a refinance.
Your credit score is also important. If you have very bad credit, it's not easy getting accepted for any loan or even a credit card. You will also be paying more than the average person with an average credit. If possible, try to improve your credit score before applying for a mortgage refinance.
When considering a mortgage refinance, always look at the total costs of this decision. You have to know if the refinance is worth it. You will face some added costs when you decide to refinance, so know that you will be living in your home for another couple of years in order to recoup the costs.
About the Author:
Mijnadviseur is an institution that gives information about mortgages in English. It also writes articles about hypotheekadviseur and dure hypotheek oversluiten in Dutch.
posted by Credit Counseling at
2:17 PM
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