Consider This Option
Over the years, people have come to me to refinance for financial reasons, or personal reasons. In response, I can say with all certainty, that I have talked more people out of refinancing, then to proceed with a refinance application. A Refinance Must Make Sense! Just because some of your friends might be refinancing, or a couple people at work are refinancing, doesn’t mean refinancing would necessary make sense for you. Having said this, there are many other times when I have contacted my prior customers who have had higher than the prevailing interest rates, shown them the numbers of a refinance scenario, and they have elected to go through with the process, thereby saving a lot of money. A refinance can be done with very little costs, to no costs, to even negative costs, so that the refinance starts paying for itself on day one!
In most all cases, you want to make sure that you are going to recoup the finance charges of refinancing far before you are to sell your property. In computing this, we need to discuss and compare your current loan against the proposed refinance, and all the finance charges of the refinance. We need to consider: the time you think you will own the property, current & proposed interest rate, whether mortgage insurance is a factor currently – or on the new loan, years remaining to pay, whether an appraisal would be required to refinance, etc., etc., Usually, a 10 minute conversation can answer most of these important questions, and we can go further from there if refinancing appears that it might make sense to you.
Veterans Refinance Opportunities: We can refinance loans for Veterans up to 100% of the appraised value. Even better, for a Veteran to refinance their current VA mortgage into a new, lower rate VA mortgage (IRRL = Interest Rate Reduction Loan), there are no appraisal requirements, no AVM (automated valuation model) requirements, no qualifying, really, no nothing but a credit check. To view the VA approved Condo Website. Click here.
To view the official government sponser VA Home Loan Website. Click here.
FHA Refinance Opportunities: If you have a FHA mortgage that is older than May 31st of 2009 and have a rate higher than the prevailing rates, a “FHA streamline Refinance” could benefit your current situation greatly. The FHA Streamline Refinance does not require an appraisal, nor does it require any type of qualifying based on debt-to-income ratios. We close most of our FHA Streamlines with giving a “Lender Credit” to the borrower that exceeds the amount of their 3rd party closing costs, and even provides Lender funds to pay for their property tax escrow!
RD Refinance Opportunities: We have been offering a program that has proven to be quite successful and beneficial for people who have RD mortgages, and wish to refinance their mortgages down to a lower rate. This program is known as the “RD Pilot Program” and allows it a Home Owner with a RD mortgage to refinance without the need to obtain a new appraisal, and without the need to qualify with debt-to-income ratios! As with all of our programs, our finance charges are Very Low, and even negative with our “Lender Credits!” If your current RD Loan is 1% or higher than the prevailing rates, you could stand to benefit with this program!
Harp Loan or Fannie Mae D.U. Plus REFI: Currently, we do not offer the Harp Loan which is Freddie Mac’s (FHLMC) refinance program for people who may be underwater on their mortgage. We do however, offer the “Fannie Mae, D.U. Plus” refinance, which is Fannie Mae’s (FNMA) version of allowing people to refinance who’s current mortgage may be greater than their home’s value. If you’re interested in this program, I can check for you to see whether you have a Fannie Mae, or a Freddie Mac Loan. With either program, you may still be able to take advantage of today’s lower rates, even if you owe more than your home is worth.