Refinancing Your Mortgage The Right Way
Because of the currently low interest rates, a mortgage refinance can be a good choice. However, because of the mortgage meltdowns recently, banks and lenders have pretty strict lending criteria, so it's not as easy as it used to be to get accepted.
If you prepare the right way, you can increase your chances of acceptance. This article goes over a few things you need to know before applying for a refinance.
Home prices are getting lower by the day. This, coupled with the increase in inventory on the housing market, lowers the amount of equity you have in your house. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy. When an appraiser comes by, he will always make an appraisal of the value in today's housing market, not the housing market as it used to be.
There are plans to help homeowners that are in a negative equity situation. Details are not yet known, but will be revealed shortly.
A bank also looks at your income. If you can't show you have sufficient income to do a refinance, you will not be accepted. There are many spots on the Internet where you can check what you approximately can get when applying for a mortgage. Make sure you have sufficient income before going through the trouble of a refinance.
Before you get a mortgage refinance, they will have a look at your credit score. If it's really bad, you'll almost certainly get rejected. If you do get accepted, you will be paying more than the average person with an average credit. If at all possible, improve your credit score before applying for your refinance.
When considering a mortgage refinance, always look at the total costs of this decision. You have to know if the refinance is worth it. You will face some added costs when you decide to refinance, so know that you will be living in your home for another couple of years in order to recoup the costs.
If you prepare the right way, you can increase your chances of acceptance. This article goes over a few things you need to know before applying for a refinance.
Home prices are getting lower by the day. This, coupled with the increase in inventory on the housing market, lowers the amount of equity you have in your house. If you currently owe more than your home is worth, getting a mortgage refinance won't be easy. When an appraiser comes by, he will always make an appraisal of the value in today's housing market, not the housing market as it used to be.
There are plans to help homeowners that are in a negative equity situation. Details are not yet known, but will be revealed shortly.
A bank also looks at your income. If you can't show you have sufficient income to do a refinance, you will not be accepted. There are many spots on the Internet where you can check what you approximately can get when applying for a mortgage. Make sure you have sufficient income before going through the trouble of a refinance.
Before you get a mortgage refinance, they will have a look at your credit score. If it's really bad, you'll almost certainly get rejected. If you do get accepted, you will be paying more than the average person with an average credit. If at all possible, improve your credit score before applying for your refinance.
When considering a mortgage refinance, always look at the total costs of this decision. You have to know if the refinance is worth it. You will face some added costs when you decide to refinance, so know that you will be living in your home for another couple of years in order to recoup the costs.
About the Author:
Mijnadviseur is an institution that gives information about mortgages in English. It also writes articles about hypotheek and hypotheek oversluiten in Dutch.
posted by Credit Counseling at
7:40 AM
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