For most prospective homeowners, taking out a mortgage is the only way that they can achieve the dream. However, there are times when the original financial circumstances under which the loan was taken change. To avoid unfortunate mortgage crises such as foreclosures and liens, you should think about mortgage refinancing. Here are a few things you need to know about the process including how to compare Refinance Mortgage Rates.
The advantages of refinancing
A lot of people do refinancing because they need to get better mortgage rates, more affordable monthly payments and lower interest rates. There are however many other benefits that come from refinancing:
1. The extra cash that comes from the refinance deal can be used to carry out financial projects such as buying a car, financing a business and other related activities.
2. Extra money that comes from the refinancing deal can also be used in repaying credit card debt.
3. It is possible to use the extra money in renovating and improving on the home. This will ultimately increase the resale value of the home.
How does one qualify for a refinance mortgage?
Most lenders will need the borrower to have paid the current mortgage for at least 12 months before they can be considered for refinancing. However, different borrowers may have different time-lines, which means that you should discuss with your lender about the possibility of refinancing. Second, most refinancing deals are done between the borrower and the original lender. However, this is not compulsory.
Other important things that will be needed for the refinance process include:
1. Application fee: This fee is supposed to cater for the checking of your credit report and the initial cost of processing the loan request.
2. Insurance and title search: This is the amount of money used to cover the cost of a policy, and also the cost of checking the public records that verify ownership of the property.
These are just a few basics you need to understand before starting the refinance process. It is vital to find out what the Refinance Mortgage Rates are before you proceed. Village Mortgage can help you refinance your mortgage and get lower interest rates.
Village Mortgage Company, NMLS #6331 CT #6331, RI #6331, ME #6331, Licensed Mortgage Lender NH #6331, Mortgage licensed lender in MA ML6331.