Refinancing
April 15, 2009
Bottom Line on Refinancing
We have all heard the stories about refinancing to help lower our monthly mortgage payments and all other kinds of rumors. The problem is that often no one is given us the bottom line on refinancing, so here it is.
Some Tulsa homeowners have interest rates at this time that are well above what is available in the market, but still cannot refinance profitably. The main reason is that property values have declined causing a requirement of mortgage insurance on any new loan. The next reason is many individuals are self employed and cannot meet the requirements of the lenders. The last reason is that the home owner has seen his credit score deteriorate and cannot meet the credit scores needed to refinance.
The bottom line to your questions:
- There is no waiting period requirement for refinancing.
- You will not lose past principal payments if you refinance.
- Past refinance costs, normally does not affect the decision on your refinancing now.
- Refinancing does not have to extend the loan for more years.
- A prepayment plan should not stoop a profitable refinance.
You should speak with your bank or lending company to learn your options. Refinancing can be an option, but may not be the best option in your case. Just remember before throwing in the towel and losing your home you should talk with the lending company to learn the best options for you in your situation. There are ways that you can keep your home instead of losing all that you have worked for over the past few years.
If you have an adjustable rate mortgage and realize that you can receive a better deal in today market with a fixed rate, it would in your best interest to speak with your lending company to learn more. Remember, your lending company may not be willing to make any adjustments to your loan to provide you with a profitable outcome. The main reason is that they are in business to make the company money not to put money in your pocket. You can still shop around for a refinance company instead of sticking with the lending company you have at this time.
