Fact: Never in American history have homeowners amassed more equity in their homes than current times. Another fact: Refinancing your mortgage can provide significant cost-saving benefits that every smart homeowner should review annually. Either it pencils out and saves you money or it doesn’t. But you’ll need a licensed and experienced mortgage professional to properly evaluate the myriad of options and loan structures available to you. They are fiduciaries, so they have your best financial interests as priority number one.
SAY GOODBYE TO MORTGAGE INSURANCE
The process to refinance your mortgage is virtually the same as a purchase, except there are many associated costs that are lower than a purchase and quicker to facilitate. You may not even need an appraisal, so the time to close has become far quicker than in years past.
Here are just a few of the advantages and opportunities of refinancing your mortgage every smart homeowner should review in detail:
- Lower your interest rate and mortgage payment.
- Lower the term of your mortgage.
- Remove mortgage insurance.
- Consolidate business loans, car loans, lines of credit and credit cards.
- Access equity for business expansion or other personal investments.
- Access equity to purchase an investment property or vacation home.
LOWER MONTHLY MORTGAGE PAYMENTS
Mortgage interest rates are still under 3%, so if your current mortgage rate is higher, or it is on a longer term than 10-15 years, good financial prudence dictates that a simple phone call review can determine what your range of benefits can actually be. Don’t run the numbers in your head – let one of our Employee Home Benefit™ Certified Partner Network Lenders do the heavy lifting with a complimentary refinance analysis, in writing.
THINGS TO AVOID DURING THE LOAN PROCESS
Many home-owners and new home-buyers make the mistake of applying for new credit, depleting their cash reserves or rushing out to buy things to furnish their new home as soon as the seller accepts their purchase offer or the lender pre-approves their loan. But, there are still a few major hurdles to overcome before the keys are handed out.
Here are some things to avoid during the loan process to assure your transaction goes as smoothly as possible:
Don't Apply For New Credit
Don’t apply for new credit! Don’t have anyone check your credit except your Certified Partner Network Lender! Don’t make any expensive purchases! It may be tempting to order that new sofa for your soon-to-be living room and try to avoid making major purchases like furniture, cars, appliances, electronic equipment, or vacations until after closing. Purchasing with a store credit card or even one of your own credit cards could jeopardize your credit worthiness during the time it means the most. All of these points can affect your credit scores which in turn, can affect your rates and costs.
Income Change or Business Expansion
Call us before you make an income change or busines expansion so we can review how it may or may not affect your transaction. A new opportunity can be a great thing, especially if you are going to be making more money. But for some people, changes in employment or income during the purchase process could raise some concern and affect their application.
Don't Switch Banks or Move Money
Don’t switch banks or move money around! As your Certified Partner Network Lender reviews your loan package, you will likely be asked to provide bank statements for the last three months on personal and business checking accounts, savings accounts, retirement accounts and other liquid assets. To eliminate potential fraud, most loans require a thorough paper trail to document the source of all funds being used for the transaction. Changing banks or transferring money to another account, even if its just to consolidate funds, could make it difficult or bothersome for you and the lender to document your funds.
MORTGAGE CALCULATOR
HERE TO HELP!
Our U-CAN Preferred Lending Partners provide refinance solutions like these every day. Simply put, they won’t let you waste your time or money on a refinance that doesn’t make sense. Call today and talk with a Employee Home Benefit U-CAN Preferred Lending Partner and learn the best financial plan for your mortgage and budget. They’re here to help!