Should I Refinance? Maybe, mortgage interest rates are at an all time low but deciding to refinance is all about the numbers. Do you want to lower your monthly payment? Shorten the length of your mortgage? Reduce the amount of interest you’re paying? Refinancing can lead to substantial savings if you qualify.
Here’s a simplified example: A $200,000 30 year mortgage at 6% when refinanced at 4% reduces your monthly payment by $245 and you’ll save almost $88,000 in interest over the life of the loan.
How do I qualify for refinancing? The process to qualify for refinancing is much the same as qualifying for the original loan. You will need certain documents and be able to share certain pieces of financial information including:
- Proof of income — the last few pay stubs.
- Monthly debt load — current mortgage, home equity loan, credit cards, auto loan, etc.
- Savings — current bank and brokerage statements.
- Income tax returns, W-2 forms.
- Credit score and credit reports (www.annualcreditreport.com).
How Do I Get Started? I strongly suggest that you engage the services of a Mortgage Consultant. A professional mortgage consultant will remove the stress of qualifying by taking you through the process step by step. If you follow their guidance, and are completely honest with them, qualifying will go very smoothly.
If you’re thinking of refinancing don’t wait interest rates have no where to go but up!
If you are buying or selling a home I offer a free, no obligation market analysis. As an informed buyer or seller you’ll make better decisions. E-mail Nancy@NancyLaswick.com or call me today at (602) 793-1627.
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