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 December 16th, 2018
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 are the following:
- 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. By refinancing their current FHA Loan to a Conventional Mortgage they can avoid paying mandatory annual FHA Mortgage Insurance Premium.
- FHA mortgage insurance premium is 0.85% of the mortgage loan amount
- That can cost several thousand dollars per year
- By refinancing to a conventional loan without mortgage insurance premium, borrowers will save thousands of dollars
- Even if the conventional loan has a higher mortgage rate, it might be cost effective for borrowers
- This is 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
- 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 text us for faster response. 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.