Should You Consider a Different Type of Mortgage?

If you are thinking about refinancing your mortgage, you might want to consider other types of mortgages. For example, you might want to look into a 15-year, fixed-rate mortgage. In this plan, your mortgage payments are somewhat higher than a longer-term loan, but you pay substantially less interest over the life of the loan and build equity more quickly. (Of course, this also means you have less interest to deduct on your income tax return.)

You also might want to consider refinancing if you have an adjustable rate mortgage with high or no limits on interest rate increases. You might want to switch to a fixed-rate mortgage or to an adjustable rate mortgage that limits changes in the rate at each adjustment date as well as over the life of the loan.

If you decide to apply for refinancing with Shoreline Mortgage, you can get a written statement guaranteeing the interest rate and the number of discount points that you will pay at closing. This binding commitment or "lock-in" ensures that Shoreline Mortgage will not raise these costs even if rates increase before you settle on the new loan. If you cannot get the lender to put this information in writing, you may wish to choose one who will.

Many  lenders offer a 30 day "lock-in" in which they will guarantee the interest rate . At Shoreline Mortgage you are guaranteed at least a 45 day lock-in. You must "close" and sign the loan during that time or lose the benefit of that particular rate. Because many people are refinancing their mortgages, there may be a delay in processing the papers. Therefore, you may want to contact your loan officer periodically to check on the progress of your loan approval and to see if additional information is needed.

Click here if you would like a complete list of Loan programs and descriptions to help you choose the mortgage that is best for you.

 


Shoreline Mortgage Corporation
4000 Hollywood Boulevard
Holllywood, FL 33021
Toll Free (888) 353-1558
Phone (954) 966-1313
   Fax (954) 966-3606
E-Mail  Loans@Shorelinemtg.com

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