With so much mortgage information you can read on the internet, you may find it challenging to separate the genuine from false claims, truth from myths. With that, you may end up making decisions that are not favorable to you in the end.
Case in point: home refinance, Surprise, AZ
When deciding to refinance your mortgage, you must make a decision based on an informed decision. Note that even a half percentage point higher than the supposed fair price could mean paying thousands more.
To help you, our readers, make better decisions when it comes to home refinance, Surprise, AZ, we have debunked below some of the most common myths about refinancing.
MYTH #1: You’ll need to reset the clock on your loan
Not necessarily true. The truth is, many lenders offer custom mortgage loans for borrowers. You may choose to take out a 25-year loan. With that, you do not need to reset your clock. You pick up where you left off, albeit at a lower rate.
Furthermore, because today’s mortgage rates are so low, you may find that you’re able to refinance to a shorter-term loan and still afford it. With a low-enough rate, a 20-year mortgage might result in payments at par with the ones you have now, but if you cut some years off your repayment period, you’ll save on interest and be debt-free sooner.
MYTH #2: You will lower your equity in your home
The truth is that unless you do a cash-out refinance, you will not lower your equity in your home. Your home equity should remain untouched as long as you do not borrow more than your existing balance.
MYTH #3: There is at least a one-year moratorium
Above is another yet false claim that needs debunking. The fact is, you can refinance your mortgage as many times as you want for as long as it makes financial sense to you. Six months from your most recent closing, you can refinance again.
MYTH #4: Closing costs are non-negotiable
Many consider paying for a closing cost as a downside of refinancing. However, that is not necessarily true. You can negotiate for favorable closing costs. However, remember that you cannot bargain for all closing costs, such as the fees charged by the government or another third-party provider.
Online looking for a reputable company that offers home refinance, Surprise, AZ, contact us at 800-810-PLUS(7587).