When refinancing a mortgage, you’re going to get a LOT of advice. You’ll hear from your parents, neighbors, friends, co-workers, and strangers. Everyone will have an opinion on your refinance, and will tell you their opinions. You will hear some good advice, sure, but there will definitely be some misinformation in there. Here’s what mortgage refinance advice to avoid, and why.
Bad Advice No. 1: You missed the boat.
You’ll start hearing this right away. “Oh, interest rates are going back up and they’re building new homes, you missed out on the market here.” Baloney. Mortgage interest rates are still really low, and we are locking people into rates in the 2’s right now. While homes are being built, the demand is still sky-high, and you can make a killing right now on a re-fi.
Bad Advice No. 2: You aren’t qualified
Guidelines are loosening again after recovering from the housing collapse and lenders are wading back into the market with mortgages. You don’t have to have perfect credit to refinance. If you have lost or changed jobs or had a credit problem, you still can qualify for a refinance.
Bad Advice No. 3: Start the clock over
You are not losing anything to refinance. You don’t start anything over. We offer a rate-and-term refinance for this reason, to let homeowners refinance to a lower rate and save money on their interest by paying the mortgage off in 15 years instead of 30. You can use the equity in your home to shorten that term while grabbing the low rates available today, and you can do it without raising your monthly payment that high since rates are so low.
Bad Advice No. 4: You’re stuck with your ARM
Even if you have some special deal for your ARM, like a 7-year or a super-low rate, you can still refinance before rates go back up. Doesn’t matter what deal you have you can always refinance. A refinance is just replacing your current loan with a new one. Your current deal can be replaced with one that will save you money and keep your payments the same every month. Don’t be stuck in that ARM when rates rise.
Bad Advice No. 5: Rates and terms are all you can change now
You can change a lot about your life with a refinance. Your equity in your home is just that: YOURS. You can use it however you want in a refinance. We offer the cash out refinance for this reason. You can change the rate and term, of course, but maybe you want to pay off credit cards, or do some home remodeling, or just need to put money away that you can access. That’s where a cash out refinance shines. It’s a mortgage product that really makes sense for everyone.
Bad Advice No. 6: Refinances aren’t worth the work
I mean, this is hundreds of dollars a month we are talking about. I know that gathering paperwork is boring and time-consuming, but think of the savings. Spending a few minutes on the phone with us going over options can literally put a car payment back in your pocket every month or help you build a pool in your backyard. This is worth the effort to reach out. We can close you in 30 days if you are ready to get it done. You can even skip a couple of months of payments after the refinance.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?