Some Tips To Help Refinance Your Mortgage
Dallas Home Mortgage was put together to provide you valuable information to aid you no matter whether you are considering to purchase a new house, or if you’re already a home owner and are simply searching for assistance with your Dallas home mortgage refinance. We sincerely hope you will find the information here helpful in achieving your end goal.
At the present moment, mortgage interest rates are at their lowest in years. The question is, how will you be able to get the best deal?
People everywhere are asking the same question; how to get in on these incredibly low mortgage interest rates. And many people are having a hard time even getting through to their lender on the phone. Understandably, people are getting frustrated.
An expert in the mortgage market who works for Fannie Mae believes that it might take a full 3 months to get the industry back to firing on all cylinders. His expectations are to see interest rates for home mortgages to stay in the neighborhood of 4.75% to 5.25% for the rest of the year.The takeaway here: Be patient – there will be lines.
Some points not to forget
1. Recognize opportunity
Bottom line – this is a fantastic opportunity. Thirty-year fixed mortgages are below 5%.From a historical perspective, rates are normally about 8%.. That is a significant difference!
Let us have a closer look at it. 30-year fixed mortgage rates are at 4.6%. Let’s say you borrowed $170,300 for thrity years on a fixed rate mortgage (this is about average for a home loan across the US) at 5%, your monthly payments would be around $915. At an 8% rate, you would be paying $1,250. The savings? Three hundred thirty five dollars per month; that’s about $4000 a year.
2. Be wary
We’ve told you it might take longer to get a refinance now. It’s just something you need to keep in mind.Something else to be prepared for is the fact that Fannie Mae and Freddi Mac have apparently raised their fees.
So don’t be surprised to find that you’re paying one to two percent more of the loan amount in the way of fees, possibly even more than that in addition to all the closing costs normally accounted for.
3. Locate the most competetive rate
Today, one of the biggest issues for people is having enough equity in their home.Today you’ll need 20% or more in equity to qualify for the best rates.
Another thing you’ll want to do is make sure your credit score remains as high as possible. Take a look at your credit report first, to make sure there aren’t any errors. You can get a free copy at annualcreditreport.com.
Shop around to get the best rate. Put all your paper work in order beforehand. Here’s a list of what you’ll need to start collecting:
Your refinance application, your tax returns from the most recent two years, pay stubs for the past month, three months of asset statements (checking, savings, mutual funds), the most current mortgage statement you have and a copy of the deed.
Please consider doing these things to get ready for your Dallas home mortgage refinance or purchase loan, and you will most likely be in excellent shape going forward to get what you want.