Consider These Questions Before You Go For Mortgage refinance, East Texas

September 26, 2019

Consider These Questions Before You Go For Mortgage refinance, East Texas

By Published On: September 26th, 2019Categories: East Texas, Mortgage Refinance

The mortgage industry can be a complex matter, particularly for beginners. There are many industry jargons that, when mistaken, could lead to a decision that isn’t favorable for borrowers. With this, it is imperative to ask questions. It is beneficial to ask help from mortgage experts.

There are several questions that you need to ask and answer before you even call your prospective lender to express your intention to refinance. Some of these are the following:

How old is my current mortgage? It makes no sense, for instance, to go for a 15-year (or above) mortgage if you only have 5 to 10 remaining years on your current loan. That is because, in the end, you might be paying more rather than saving some amount. And it defeats the primary purpose of refinancing.

Do I plan to stay in this property for a long time? If you do not have any plan to stay in your home longer than, let’s say, 3 years, then you might want to reconsider your decision to go for a mortgage refinance, East Texas. The truth is, it would take a longer time to recover the costs of refinancing. To figure it out, divide the amount you’ll pay in fees by the amount you’ll save each month to get the number of months to break-even on your loan.

Do I have enough home equity? Your equity is the percentage of the home that you own outright. Meaning, it is the portion of your home that is not currently mortgaged. It grows as you pay down your loan.

Equity is one of the factors that a lender will look into when you apply for a mortgage refinance, East Texas. They tend to give favorable rates to those who have at least 15% to 20% equity in their property.

Does my present mortgage have a prepayment penalty? If your current mortgage has a prepayment penalty, you might be charged for a fee if you refinance. Because, that would mean you are paying off the loan well ahead of the due date. Of course, you might find this as an unfair practice but that’s how the industry works. So, figure out the number and an act based on what the number tells you.

You home mortgage experts at HomePlus are readily available to attend to your other questions about mortgage refinance, East Texas.

Contact us at (800)810-PLUS (7587)