CONSIDERING A HOME REFINANCE?
If you are considering a home refinance there are a few things you need to know. The first thing you need to know is that this is NOT a refinance market like we have experienced over the last few years. Interest rates are UP this year. So if you are looking to save money with a lower rate do your homework before biting on those contacts coming at you through the mail, email, etc.
Ask yourself why you might consider a home refinance.
Do you want cash out? If that is your goal then having a higher payment or higher interest rate may not be a deal breaker for you.
Do you want to shorten the term of your loan pay off? Then perhaps this could be a valid reason but the short term rate could be higher than you area currently paying.
Do you want to lengthen the mortgage pay off?
Do you have a mortgage that you've had for a long time that has an interest rate higher than we saw over the last several years?
Do you have an adjustable interest rate and you want a fixed rate?
Do you have to remove a borrower from your current loan?
These may be valid reasons to consider a home refinance. Proceed with caution when contacted by someone wanting to refinance your mortgage and give you a rate exceedingly better than the market. There is only one way to make that happen in today's market and it involves using equity by buying down the rate.
Were you considering a refinance before a sales person contacted you?
We're seeing a slow down in loan originations due to higher rates and lower inventory. There are more cold callers working the phones who are professional sales people. Beware and do your homework if you get one of those calls.
If you are considering a home refinance be sure you analyze all the costs associated with it and your reasoning for refinancing. Consider your options. Because it has become a tighter market for lenders with sales down and interest rates up we are going to see more hard core sales people trying to fill the gap in their income by 'selling' a home owner on a refinance. Perhaps a refinance that is not in their best interest. Anytime you consider changing your mortgage make certain the loan originator you speak with covers all the pros and cons.
I know my past clients can depend on me for honest answers if they are considering a home refinance and I believe they know that too. I'm always available to help think through the pros and cons of a refinance.