Top Reasons To Refinance Current Home Loan & How To Save Money
This BLOG On Top Reasons To Refinance Current Home Loan & How To Save Money Was UPDATED On July 27, 2017
Many homeowners should be thinking of refinancing your current mortgage to see if there are ways of saving money. Most homeowners do not realize the type of money they can save by refinancing their current home loan. Top reasons to refinance a home loan is the following:
- Refinancing Into A Lower Mortgage Interest Rate can save tens of thousands over term of loan.
- Refinance FHA Loan to Conventional Loan and avoid paying annual FHA Mortgage Insurance Premium.
- Refinance Co-Borrower and/or Non-Occupant Co-Borrowers off loan.
- Do a cash-out refinance mortgage loan and use the cash to pay off outstanding high interest bills.
- Refinance FHA Loan to VA Loan and get 100% cash out refinance mortgage.
- Refinance hard money loan or NON-QM Loan to FHA or Conventional Loan.
Reasons To Refinance And The Refinance Mortgage Process
- There are closing costs involved on all mortgage transactions.
- The right rule of thumb for homeowners Reasons To Refinance is if they are staying in their home for 2 or more years and can reduce current mortgage rates by 1.5% or more, refinancing may offer net tangible benefit.
- However, homeowners planning on selling their home in the very near future need to consider whether or not refinancing is cost effective.
- There are Reasons To Refinance that benefit homeowners.
- Top Reasons To Refinance is that it will save homeowners thousands of dollars or take out borrowers, co-borrowers, and non-occupant co-borrowers who no longer want to be on the loan.
Top Reasons To Refinance FHA To Conventional Loan
Homeowners who currently have a FHA mortgage loan and have at least 20% or more equity in their home may want to refinance their current FHA Loan to a Conventional Mortgage so they can avoid paying mandatory annual FHA Mortgage Insurance Premium.
- FHA mortgage insurance premium is 0.85% of the mortgage loan amount and that can cost several thousand dollars per year.
- By refinancing to a conventional mortgage loan without mortgage insurance premium, borrowers will save thousands of dollars.
- Even if the conventional mortgage loan has a higher mortgage rate, it might be cost effective for borrowers since FHA MIP can be costly especially in FHA High Balance high cost areas like many counties in California.
- A Loan Officer can go over figures and advice on the amount of savings.
- It does not cost mortgage applicants anything to get a free mortgage savings analysis done to see whether or not a Reasons To Refinance is beneficial to them or not.
Check Credit Report For Errors
A low credit score yields higher mortgage rates and less favorable terms.
- Homeowners thinking of refinancing their current mortgage should get a copy of credit report and look for any errors that may affect their credit scores.
- Review for any errors.
- If there are errors, have the loan officer do the dispute through a rapid rescore.
- Credit disputes are not allowed during mortgage process.
- Borrowers with recent sudden drops in their credit scores may want to wait until the credit scores goes back up.
Need Help Improving Credit To Get Best Mortgage Rates?
Homeowners who need to qualify for refinancing and need help improving your credit, contact us at 262-716-8151 or email us at firstname.lastname@example.org. Viewers can also visit us and subscribe to our mortgage and real estate daily newsletter at www.gustancho.com .We are available 7 days a week.