If you are going to refinance your home loan, it is important to know the following 7 things.
1.) What your credit score is. It is your right to know your credit scores. Every mortgage professional will have to see your credit report before he/she can process your loan. So if you don't know your score, ask the mortgage professional you rare dealing with to tell you.
2.) Is the new loan going to be have a fixed interest rate or adjustable (ARM)? Rates will vary depending on whether or not the loan is going to have a fixed rate or an adjustable rate. Adjustable rates can and most likely will adjust in 2/3/5 years or any other time frame. Also, your rate will continue to adjust every few months. Usually every 6 months.
3.) What are your closing costs? While most closing costs are rolled into the loan (no out of pocket expense) you still should know what they are. Ask your mortgage broker for a Good Faith Estimate (GFE). You are entitled to this document. So ask for it. It will give you an itemized list of all of the fees involved in your loan.
4.) How much your appraisal is going to cost. Every refinance needs to have an appraisal done. This fee is typically about $300. And it is usually due at the time of the appraisal. You can pay by cash, check, or credit card. But make sure you ask the appraiser how you can pay as some may vary.
5.) Are you going to have pay Private Mortgage Insurance (PMI)? If your LTV (loan to value) ratio is above 80%, then you may have to pay PMI. You should know, that when your LTV drops below 80%, your lender has to drop the PMI. But chances are they won't do it unless you call them and tell them to.
6.) If you are paying off credit card debt that is in collections, you can get a payoff amount that is much lower than what they claim. You can get at least 20% knocked off without breaking a sweat. If you play a little hardball you can get even lower. I would shoot for getting 35% knocked off the total amount that you owe. Also, tell the creditors that they must remove and negative remarks on your credit as part of the deal. Make sure you get it in writing!!
7.) Work with someone you trust and returns your phone calls and answers any questions. I know this sounds like common sense. But a lot of mortgage "professionals" out there aren't professional at all. You'd be surprised at how many can't even return a simple phone call.
About the Author
Philadelphia Refinancing - More information can be found at Philadelphia Refinance | Information On Refinancing Your Home Loan
Website with information on refinancing your mortgage loan.
1.) What your credit score is. It is your right to know your credit scores. Every mortgage professional will have to see your credit report before he/she can process your loan. So if you don't know your score, ask the mortgage professional you rare dealing with to tell you.
2.) Is the new loan going to be have a fixed interest rate or adjustable (ARM)? Rates will vary depending on whether or not the loan is going to have a fixed rate or an adjustable rate. Adjustable rates can and most likely will adjust in 2/3/5 years or any other time frame. Also, your rate will continue to adjust every few months. Usually every 6 months.
3.) What are your closing costs? While most closing costs are rolled into the loan (no out of pocket expense) you still should know what they are. Ask your mortgage broker for a Good Faith Estimate (GFE). You are entitled to this document. So ask for it. It will give you an itemized list of all of the fees involved in your loan.
4.) How much your appraisal is going to cost. Every refinance needs to have an appraisal done. This fee is typically about $300. And it is usually due at the time of the appraisal. You can pay by cash, check, or credit card. But make sure you ask the appraiser how you can pay as some may vary.
5.) Are you going to have pay Private Mortgage Insurance (PMI)? If your LTV (loan to value) ratio is above 80%, then you may have to pay PMI. You should know, that when your LTV drops below 80%, your lender has to drop the PMI. But chances are they won't do it unless you call them and tell them to.
6.) If you are paying off credit card debt that is in collections, you can get a payoff amount that is much lower than what they claim. You can get at least 20% knocked off without breaking a sweat. If you play a little hardball you can get even lower. I would shoot for getting 35% knocked off the total amount that you owe. Also, tell the creditors that they must remove and negative remarks on your credit as part of the deal. Make sure you get it in writing!!
7.) Work with someone you trust and returns your phone calls and answers any questions. I know this sounds like common sense. But a lot of mortgage "professionals" out there aren't professional at all. You'd be surprised at how many can't even return a simple phone call.
About the Author
Philadelphia Refinancing - More information can be found at Philadelphia Refinance | Information On Refinancing Your Home Loan
Website with information on refinancing your mortgage loan.