Newsletters

Questions & Answers About Refinancing

What is Refinancing?
A refinance transaction is the process of paying off one loan with the proceeds from a new loan, using the same property as security.

Why Should I Refinance?

Can Refinancing Help Me Build Equity More Quickly?
Yes. You can build equity more quickly when you refinance from a longer term mortgage to one with a shorter term. With shorter term loans, a greater percentage of your monthly payment goes to the principal. For example, if you currently have a 30-year fixed-rate loan, you might consider refinancing to a 10-, 15-, or 20-year loan, which will lower the total amount of interest you will pay over the life of the loan and speed up the growth of equity in your home.

When Should I Refinance?

When interest rates fall 2 percent below your current mortgage interest rate.
If you expect to keep your property for at least 3 years.

How Can I Avoid Paying Refinancing Costs?
Lenders may be willing to negotiate and waive some of the fees and closing costs. Some lenders offer "no-cost" refinancing, which means that you do not have to pay most of the fees generally required; however, lenders usually charge a higher interest rate for this type of loan. Or, you may able to roll the upfront costs of the refinancing into the new note and still reduce the amount of your monthly payment.

For more information contact us.

Obtaining A Copy of Your Credit Report

Include your:

Full name
Current and past addresses over the past 5 years
Social Security number
Date of birth
Spouse's name (if married)
A copy of your utility bill (to verify your residence)
$8 plus tax (in most states)

Send this information to one of the national credit reporting agencies listed below.

Both companies offer a free credit report to people who have been turned down for credit, insurance, employment, or a rental dwelling because of information supplied by the credit bureau. If this has occurred, call the phone number listed for more information before writing to request your report.

Choosing a Qualified Real Estate Broker

Knowing how to choose a qualified real estate broker can alleviate many of the possible pitfalls within the real estate buying process. A good broker can:

Navigate the novice through the often intimidating tide of paperwork and procedure.
Negotiate the best price for commercial property for the businessperson.

Before selecting a broker, be sure to answer these questions.

Is the person:

A full-time licensed real estate broker?
Extremely knowledgeable about the local real estate market?
Excited about selling property, and is that energy infectious?

Does the broker:

Offer loan services and home-buying seminars?
Answer all of your questions?
Work long hours?
Have a network of referral services?

A good broker can save a buyer time by providing listings of properties for sale in their price range and target area. But most importantly, a broker has the knowledge that can get you through the loan process and can explain confusing terms like "PITI" and "wraparound mortgages".

In addition, a good broker keeps a close watch on deadlines to ensure that your deal closes before the end of escrow. Often, a broker will have contacts at banks and title companies who can assist in meeting deadlines.

It is definitely worth your time to do a lot of calling around and asking questions. Also, it is helpful to ask a broker for client's letters of recommendation.

It's vital to have a comfortable working relationship with your broker and confidence in his/her abilities in order to develop the trust needed to sign on the dotted line.