That article is about 7 Questions To Ask Before You Do A Home Loan Refinance. With more and more people having mortgage troubles lately I decided it was time to tell you what you need to ask your loan originator. These 7 questions are very important to know in order to save you the most money and get you the best home loan refinance. Remember, refinancing your home is much easier than when you first got the loan. Here are the 7 questions you need to ask.
What will my payment be?
Knowing exactly what your payment is going to be is very important and probably the most important thing when it comes to getting a mortgage refinance. Most people think that just because they have some equity in their house they will get a lower payment, but this is not always the case.
What will my interest be?
Your interest rate from your mortgage is probably the biggest factor in what you will pay for your home. The slightest change in interest rate will save you thousands over the life of the loan.
Can I pay for points?
One thing that most people don’t know is they can actually pay the lender to give them a better interest rate. The reason this is a smart idea is because you will pay pennies on the dollar compared to what you would pay if you wait and pay the interest during the life of the loan.
How can I get a lower interest rate?
A great question to ask is if aren’t getting the best interest rate is what you can do to get a lower one. Paying for points is one way, but the best way is to simply ask the loan originator what you can do to improve your credit score. There are many simple things you can do to slightly improve your credit score which will take points off your interest rate.
Can I get cash out?
The only reason I would ask this is if you have debt. This might even be the reason you are getting your mortgage refinanced and if it is then this is very important to know. Some people can’t get cash out because they may owe more than the current value of the home. It would be a waste to go through all the trouble of getting refinanced if you couldn’t even get the money you wanted.
What can I do to increase the value of my home?
This is another question that I recommend asking. Most of the time the originator can get their hands on the appraisal and tell you what you can do to improve your homes value. This can be extremely helpful considering that less than $1,000 can add up to 2 to 4 times as much on your homes value.
How long is this refinance for?
Knowing how long you are getting your refinanced loan for is crucial. Most of the time lenders will ask you what you want but you need to be careful about the ones that are just trying to do what is best for you and put you in a loan that you don’t want. The only person that knows what is best for you is you.
All 7 questions will help you get the best loan, make the wisest decision, and save the most money for the life of the loan.