How To Refinance The Right Way
Because of the currently low interest rates, a mortgage refinance can be a good choice. However, because of the mortgage meltdowns recently, banks and lenders have pretty strict lending criteria, so it's not as easy as it used to be to get accepted.
If you prepare the right way, you can increase your chances of acceptance. This article goes over a few things you need to know before applying for a refinance.
Home prices are dropping seemingly by the day. There are a lot of homes on the market and the inventory is increasing by the day. This will almost certainly decrease the amount of equity you have in your home. When an appraiser comes by, he will make an appraisal of the value in today's housing market. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy.
There are plans to help homeowners that are in a negative equity situation. Details are not yet known, but will be revealed shortly.
A lender also wants to know your income. If the income is not sufficient to do a mortgage refinance, equity will come into play. If you have little equity, you will have trouble getting accepted for a mortgage refinance. On the Internet there are many sites that can tell you what you can approximately finance with your current income. Be sure to take a look before applying.
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 prepare the right way, you can increase your chances of acceptance. This article goes over a few things you need to know before applying for a refinance.
Home prices are dropping seemingly by the day. There are a lot of homes on the market and the inventory is increasing by the day. This will almost certainly decrease the amount of equity you have in your home. When an appraiser comes by, he will make an appraisal of the value in today's housing market. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy.
There are plans to help homeowners that are in a negative equity situation. Details are not yet known, but will be revealed shortly.
A lender also wants to know your income. If the income is not sufficient to do a mortgage refinance, equity will come into play. If you have little equity, you will have trouble getting accepted for a mortgage refinance. On the Internet there are many sites that can tell you what you can approximately finance with your current income. Be sure to take a look before applying.
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 Debt Consolidation Loan at
7:18 AM
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