Refinancing a mortgage is a popular way for homeowners to lower their monthly payments, accelerate the rate of payoff, or cash out on home equity. Unfortunately, not everyone’s situation is conducive to refinancing. Make sure to avoid the following refinancing mistakes and always speak with a TX mortgage expert before rushing into any financial decision.
Refinancing Mistake #1: Not evaluating every resource.
When it comes to searching for the best refinancing program, it’s a good idea to leave no stone unturned. Don’t be afraid to ask your lender if there are any special programs you could qualify for; for example, the government’s HARP refinance program. The HARP program allows homeowners the chance to refinance a Fannie Mae or Freddie Mac loan for up to 125% of your home’s value. In addition to the HARP program, there may be other special refinancing opportunities out there – but you’ll never know unless you ask!
Refinancing Mistake #2: Not considering the future.
Ask yourself the following questions before diving in to a refinance program: How long do I really think I will be living in this home? How stable is my financial situation? Do I plan on relocating, switching jobs, or being transferred within the next couple of years? By asking yourself these questions, you’ll be able to get a better understanding of what your future may hold. By understanding your future, you can make the appropriate plans. For instance, refinancing to a 15 year fixed rate loan might work well if you’re planning on staying put for a while. On the other hand, if you anticipate big changes in your life, a 3/1 or 5/1 Hybrid ARM may be a better option.
Refinancing Mistake #3: Choosing a lender you’re not compatible with.
There’s more to a good mortgage lender than low interest rates. A lot of first time borrowers fall victim to signing up with the first lender that offers them a rate quote without asking questions about what the process will be like, and when they can expect to close the loan.
Working with a professional who is trustworthy, helpful and communicates often can save you a lot of time and stress. We at the Decker Group are committed to serving our Texas and Oklahoma borrowers with the highest level of customer service as well as competitive rates. Contact us today to learn more about our refinancing services: 972-591-3097