Don't Assume you Can't Refinance
Don't assume you can't refinance your home mortgage without even making a few phone calls. I am in the process of getting my home refinanced and my interest rate is going from close to 8% all the way down to 5%. Okay now can I get an Amen out there? I spoke to a friend the other day and they actually said to me I can't refinance my credit is to bad. I said have you called your mortgage company and asked? The answer shocked me, "well no not yet but I know my credit score is to low" was the reply.
Don't assume anything with out making a call to your mortgage company. Are you serving your money to your creditors on a silver platter? Well how about turning the tables for once?
I have owned my home for only 1 year and I qualify, don't assume since you have not been in your home long you are stuck with your high interest rates.
There are many different programs your mortgage company can go through to get you better rates. Right now 2009 the rates are lower. If you have a near 8% rate why not take the time to call? You never know what they may be able to offer you. There are different people who may be able to help you as well. There are FHA loans can be the way to go.
FHA REFINANCE: CASH OUT REFINANCING
This refinancing option is especially beneficial to homeowners whose property has increased in market value since the home was purchased. A Cash Out refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe, therefore repaying their current mortgage and using the equity they have built up in their home to take out another larger mortgage out. This allows the homeowner to access the equity ( the amount they have paid off ) they have built up in their home and put it to good use where needed. You can use your cash for paying off debit, home repairs and remodeling or anything else you need the money for.
Other options are:
FHA REFINANCE: STREAMLINED REFINANCING
This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and oftentimes without an appraisal. FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money. You don't have to pay for:
In order to qualify for a Streamlined Refinance your original home loan must be an FHA loan in good standing and the refinance must lower your monthly interest payments. This type of refinancing option reduces your monthly expenses by lowering your payments but there is no option to receive cash back. This works well for people who are in good financial standing with no significant debt because it allows you a little extra money each month that can be put to good use elsewhere.
Question you Should Be Ready to Answer
WHAT KIND OF FHA REFINANCING DO I NEED?
If you have a conventional home loan, an FHA refinancing mortgage is the product for you. If your home loan is an FHA mortgage, you can apply for an FHA Streamline mortgage.
IS MY LENDER WILLING TO HELP ME REFINANCE OR SHOULD I SHOP AROUND?
FHA refinancing loans are offered by participating lenders—they aren’t available at every bank. If your loan officer says your current bank doesn’t want to pursue FHA refinancing options in your case, shop around for a participating lender who can help.
HAVE I EVER FILED FOR BANKRUPTCY?
WHAT IS MY CREDIT SCORE?
HOW MUCH OF MY INCOME GOES TOWARD MY CURRENT MORTGAGE?
WHAT KIND OF PROPERTY DO I OWN?
One requirement for an FHA refinance loan is that you occupy the property you are refinancing.
There are many differences between FHA Streamline refinancing and refinancing from a non-FHA mortgage into an FHA loan. Streamline loans, for example, may not require a new appraisal while an FAH refinance loan on a property purchased with a conventional mortgage may require a re-appraisal in some cases. Ask your lender about your specific needs. If you want to learn more visit their website: FHA
We have our home through Wells Fargo. Every time I have had any dealings with Wells Fargo I have been very pleased with their customer service. Always friendly and help resolve my problems quickly.
You Can Give Yourself More Financial Freedom By Refinancing:
- consolidate bills or credit cards
- Conveniently pay off outstanding debts
- No cash required at closing in some cases
- Breathe easier with lower monthly payments.
- personalized Refinancing solution that fits your financial situation.
I am paying off credit cards of course, the good ol' American dream. Bank of America has been hands down the worst credit card we have ever had. The interest rates have went through the roof, so much for paying on time and never missing a payment. I think people would get a credit card rate bail out the government should put a cap on rates. After all 25% is a bit ridiculous! That's a whole other hub lol.
I do have to pay closing costs but I can also cash out $10,000.00 to pay off my debit. I have available equity in my home.
How can you tell if you have equity in your home?
1. How much do you owe on your home?
2. How much does your home appraise for? You would have received your tax papers for the year that would have told you the taxable amount for your homes value this will give you a good idea.
3. Take the amount the home is worth and subtract the amount you owe that number would be the amount of home equity you have.
Don't Be Afraid to Make a Few Phone Calls
Don't be afraid to make a few phone calls.
At first you might think why bother, right? There are many people out there who are willing to help you. If you do not make any calls you will not meet anyone who may be able to lower your rates before your next months payment! Now you are listening right? How about you take my situation and apply it to yours for just a few moments. Consider this your encouragement to look into this refinancing idea. Even if your credit is bad today that doesn't mean you can't start to work on it to make it better today right?
After all my phone call just got me a lower interests rates. A lower monthly payment of around $650.00 compared to $725.00 before. I got $10,000.00 in my pocket to pay off debit saving me all that interest over all those years. Combining my credit card payment with my house payment will save me over $500.00 per month in credit card payments I was paying out.
I was basically throwing away $500.00 a month, yes per month to my creditors!
Not any more! So get out there and make some phone calls. Good luck and I hope you get to refinance as well.
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