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3 Tips For Wyoming Mortgage Refinance
So you are thinking of a refinance of your mortgage? Here are three tips to help save you money up from and over the life of your loan.
1- Always ask for a fixed rate mortgage! Adjustable rate mortgages offer great initial "teaser" rates, but once that trial period is over you may be stuck with a rising mortgage payment you can no longer afford. If you are going to reside in your home for more than seven years, than a fixed rate is the only way to go. An adjustable rate mortgage may be good if you are looking for a short term mortgage. You will then have rates that are generally 0.5-1.0% less than a fixed rate mortgage, meaning your mortgage payment will be less every month that with a fixed rate mortgage. Many problems I run into are people like the initial lower rate so they take it with the intentio of staying in there house for a long period of time. |
Then when it comes time to get out of the adjustable rate, they do not qualify. They have allowed their credit to get all messed up and then are wondering why they are stuck in an adjustable rate and no one wants to give them a new loan. So if you do have an ARM (Adjustable Rate Mortgage) make sure you keep your credit in line so you can get out of it when the time comes.
2- Roll the closing costs of the refinance into the loan! This means zero $ out of your pocket. Furthermore, it is much cheaper to roll $5,000 into your loan than come up with that huge lump of cash. Your payment will probably be about $35 higher a month by adding $5,000 to your loan amount. If you stay in this loan for five years, the average person stays in their loan for 3-5 years, you pay $2,100 extra (that is $35 times 60 payments) which is spread over five years. Or you can fork out $5,000 of your own cash. By rolling the costs into the loan you actually save yourself $2,900 and get to spread your payment over five years!
3- Use a mortgage broker. Brokers work with multiple lenders and have access tot he best rates and the most programs. If you go to your local bank and ask for a loan they tell you, "You qualify for xx rate and xx payment, take it or leave it." Brokers have access to better rates through wholesale channels because the banks do not have to pay all the overhead. It is like shopping at Sam's Club. The broker has mortgage programs for all credit types.
Mark Beelek - A Plus Mortgage For more information visit www.a-plus-mortgage.net
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