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Should You Refinance?
Surrounded By A Sea of Refinancing Confusion!
There are probably many "lifesaving" tips people have thrown you to help you determine the right time to refinance
your home. You may have heard that the interest rate on the new loan must be at least two percent less than the old
loan, or it is not a good decision. Another frequently quoted, but just as frequently incorrect statement, is that if your
loan is less than two years old, you shouldn't refinance it now. Neither one of these statements is entirely correct, and it can be extremely difficult to receive unbiased and accurate information about the refinancing decision and
process. It is our desire to offer you a clear, concise guide to help you get rescued from that sea of refinancing confusion. This report has been designed to provide unbiased information that will help you make an educated
decision about whether or not to refinance your home mortgage.
When Should I Refinance my Home Mortgage?
Put very simply, the decision to refinance a home should be based on whether you will own the property long enough to recapture the expense connected with the new loan. The way to figure this can be as easy as
subtracting the proposed new house payment from the existing payment to find out what the monthly savings will be. Then, divide the monthly savings into the cost of refinancing to determine how many months it will take to recapture
that cost. There are some situations in which a refinancing decision should invariably be made. If you are able to
negotiate a "no-cost" mortgage (you pay no points or closing costs), and if the new mortgage rate is lower than your
existing rate, than refinancing your loan would certainly be of financial benefit to you. If the remaining mortgage balance, including points and closing costs, can be refinanced at a reduced monthly payment, and still be paid off
within your existing mortgage payment term, then refinancing would be highly advisable. If you need extra cash for a
home equity or auto loan, and the mortgage rate is lower than alternative loan rates, then refinancing is probably the
best choice. Lastly, you can generally count on it being time to refinance when your new mortgage rate is at least
one to two points lower than your existing rate, and you plan on staying in your home for at least three to five years.
What Refinancing Myths Do I Need to Watch Out For?
One widespread myth that needs to be dispelled, is the idea that lowered monthly payments are the financial
yardstick that wise refinancing is measured by. Monthly payments are only comparable if they are based on the same loan duration! In fact, lowered monthly payments can be achieved even at a higher mortgage rate, if the new
mortgage has a longer term than the remaining years of the old mortgage. Another common misconception about refinancing is that if the new rate is not at least two points lower than your existing mortgage rate, then refinancing
is not worth the time and trouble. In many cases, especially if you are planning to stay in your home at least three to five years, even a one point reduction can make an enormous difference in your overall home mortgage cost. In
addition, with the constant technological advances in the mortgage industry, obtaining a mortgage loan or refinance is
now faster and easier than ever before. If you have any confusion or apprehension about your refinancing decision, most mortgage brokers will consult with you at no charge or obligation.
What Exactly Do I Need To Consider About Refinancing My Home?
To accurately sum up your refinancing decision, you need to thoroughly consider the following five factors:
What Will Actually Be Involved When I Refinance My Home Mortgage?
When you refinance, the proceeds from your new mortgage loan are used to pay off your old mortgage. Even if you use the same lender this is true. You are not simply re-negotiating the terms of the old mortgage, such as reducing
the interest rate. You will receive back the old note that you signed, the mortgage contract, and your lender will file a Mortgage Record Change. You will sign a new note and mortgage contract which your new lender will record. No
money will pass through your hands, unless you borrow more than your old mortgage balance. However, you must pay for points and closing costs unless you finance those as well as the old mortgage balance. You need to expect
that your home will have to be appraised again, and possibly inspected. Your credit history will be reviewed again, and there will probably be changes in your mortgage and title insurance. Of course money doesn't just grow on
trees, but if it is truly the right time for you to refinance, then with the money you will be saving after twelve to eighteen months, you should begin to feel like your money trees are in full bloom!
What Should I Do If I'm Still Not Sure I Should Refinance My Home Mortgage?
If after reviewing this report you are still not sure whether or not you should refinance your home, then it is time to
call on someone trained specifically to help you interpret your individual mortgage situation. Many mortgage brokers will meet with you at no cost to consider your refinancing needs, and a good place to start is with the Shoreline
Mortgage team. As your Personal Loan Consultants we are trained to take care of all those details for you, and we will gladly meet with you at your convenience to discuss your specific refinancing situation. This consultation is
absolutely free, and there will be no obligations or salespeople hounding you if you decide that it is not the right time
for you to refinance. Remember that refinancing your home mortgage does not need to be a tedious, overwhelming task. Give us a call at (305) 931-1558 or toll free at (888)353-1558, and let us show you just how quick and
hassle-free creating increased cash flow through your home mortgage refinance can be!
A few words from our President - Michael Minkoff:
"I appreciate your desire to consider refinancing your home, and realize that it can be a complicated and difficult
decision to make. I pledge to help make that decision easier by offering you the "no-obligation/hassle free" services
and advice of my company. This is a very competitive industry, and we seek to set ourselves apart by offering extreme levels of service and assistance to anyone in need of mortgage financing or advice. We offer our clients an
in-depth communication and service system while they are in the loan process, and continuing value long after their
transaction is complete. I sincerely believe that it is this attitude of servant-hood that has made us the busiest and
best mortgage company in town. I sincerely hope this report has been helpful to you, and that you have truly become a more educated consumer. Please call me or email me at if you would like advice or assistance with any financing
need!"
There are a different factors to consider before refinancing. Use our tools below to determine if now is the right time for you to refinance.
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Shoreline Mortgage Corporation |
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Hollywood, FL 33021
Toll Free (888) 353-1558
Phone (954) 966-1313
Fax (954) 966-3606
E-Mail
Loans@Shorelinemtg.com
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