A typical closing lasts about one hour. However, if any problems are uncovered with the paperwork, for example, this can cause delays
Getting Cash from Your Home
During the Break Up, 10 Strategies for Hassle-Free Mortgage Refinancing
By JASON RICH
As of early-November 2007, the real estate market nationwide is experiencing a dramatic slowdown in home and condo sales, and there appears to be little good news on the horizon. Interest rates are on the rise, plus mortgage lenders have become much stricter in regard to their approval process. These days, it’s difficult to obtain a mortgage with no money down, if you’re unable demonstrate a steady income, or if you have a poor credit history.
If you’re in the midst of a divorce and are being forced to sell real estate quickly, finding a buyer willing to pay top-dollar, or even fair market value for your property might be a challenge. On the flip side, if you’re newly single and looking to buy a home or condo, your selection will probably be vast, and in many areas, you’re apt to find excellent deals.
For a variety of reasons, it might make financial sense to keep your existing home and refinance it, either to cash out on some of your equity in the property, to lower your interest rate, or to convert from an adjustable rate mortgage to a fixed-rate mortgage. A financial planner, accountant or knowledgeable mortgage broker/lender will be able to assist you in deciding if refinancing an existing mortgage makes sense.
Deciding to refinance means finding a reputable mortgage broker whom you’re comfortable dealing with, and who is willing to help you find a mortgage product that’s best suited to your needs, based on your current credit score and financial situation. You also want to insure the broker you opt to work with is willing and able to get you the best rates possible, while at the same time, charging you the lowest fees.
Refinancing is the process of replacing a mortgage on a property with another mortgage that offers different, hopefully more financially appealing, terms. It’s common for homeowners to refinance multiple times before fully paying off their home or condo. Each time you refinance, however, you’ll go through a similar process as you did when you first purchased the home or condo and obtained your original mortgage.
By refinancing, you could potentially lower your interest rate, cut the duration of the loan, cash-out on some of the equity in your home, and/or obtain better financing terms. When you refinance, many of the fees associated with the process can be built into the new loan to avoid out-of-pocket expenses at the closing. However, expect to pay to have your property appraised at an out-of-pocket cost of between $250 and $350.
Regardless of the type of mortgage you have or wind up with, your monthly payment is determined by a number of factors, including the loan’s principal, it’s interest rate, the length of the mortgage, the terms of the loan, and the fees you are required to pay in conjunction with the loan (including the closing costs). By refinancing, if you can lower your principal, reduce your interest rate, obtain lower fees, or decrease the length of the loan, for example, your could potentially save many thousands of dollars over the 15, 20 or 30 year life of the mortgage. Plus, you could potentially lower your monthly payment and eliminate financial uncertainly associated with possessing an adjustable rate mortgage (where the interest rate can change and dramatically increase the amount of your monthly payment).
“The actual paperwork that needs to be signed is almost always very similar, whether you’re first acquiring a mortgage or refinancing,” stated Adam Walker, a cofounder of Roswell, Georgia-based Homestead Settlement Solutions, a one-stop-shop that handles real estate closings nationwide. “The big difference is that with a refinance, there’s a three-day rescission period. This gives the borrower three days to decide to negate the new mortgage simply by notifying the lender or closing agent. During this time, the borrower should again review all of the terms. Make sure all of the rates and fees listed within final paperwork are consistent with what was originally agreed to. Compare the good-faith estimate and HUD-1 statements you were given prior to the closing with the paperwork completed at the closing.”
10 STRATEGIES TO HELP YOU REFINANCE YOUR MORTGAGE:
1. Review Your Credit Reports and Credit Score.
Before you start filling out mortgage applications and shopping around for the best refinancing deals, carefully review your credit report from each credit reporting agency (Equifax, TransUnion and Experian), and determine what your credit scores are. Your official FICO Score is important to know. When you attempt to refinance, the broker will evaluate all three of your credit scores, plus look carefully at your credit history. If your credit score is below 620, you’ll have a difficult time refinancing in today’s market. Assuming you can get approved with a below average credit score, you’ll wind up paying an extra-high interest rate and exorbitant fees. Within a 30-day period, an unlimited number of credit inquiries can be made by mortgage brokers and lenders, so you can shop around for the best deals, without worrying about your credit score taking a negative hit as a result of excessive inquiries.
2. Make Mortgage Payments On Time Prior to Refinancing.
For at least 12 months prior to refinancing, make sure you make all of your current mortgage’s monthly payments on time. Even one 30-day late payment could make it extremely difficult to get approval for refinancing. Ideally, you want to be able to show on-time payments to all of your creditors and lenders. However, mortgage lenders/brokers look specifically at your mortgage payment history.
rss feed ::
suggestions / issues
is for informational purposes only. It does not provide legal, financial or therapeutic
