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Tribal Lenders Guaranteed Approval When Does It Make Sense To Refinance? Three Questions To Review

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04-Jun-2019 06:09 AM

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When interest rates get as low as they are right now, many people call me and ask if it makes sense for them to refinance. I wanted to use this article to give you some tips and principles so that you know if it makes sense and answer common refinancing questions.

How long will you stay in your home? In order for refinancing to make sense, you have to stay in the property for an extended period of time. Let me give you an example:

Let's say that you were going to lower your monthly payment by $200 per month by refinancing to a lower interest rate. If the loan was going to cost you $3000 to do the loan (closing costs, title fees, etc.), then you would need to stay in the home at least 15 months in order to break even (15 months of saving $200 a month is $3000). So, if you are not going to be in your home, then the fees associated with doing the loan offset the benefit of lowering your payment. This means you would pay more money to get the apply for loans tribal lenders guaranteed approval now than what you would be saving.

Do I have to get an appraisal? This is a common question because many people's property values have dropped over the last couple of years. The answer to this question depends on the type of loan you are trying to qualify for.

There is a loan program called the FHA Streamline program where an appraisal is not required and income does not have to be verified. This is a very popular loan program right now.

There is also a program for conventional loans called DU Refi Plus. If your secure loans tribal lenders guaranteed approval from hummingbird company qualifies, you will not be required to have an appraisal done on your property.

There are certain requirements that you must meet in order to qualify for the loan. Contact a local lender and see if you qualify.

How do I refinance if I don't have enough money to pay for the closing costs? There are options for handling closing costs. The way that I do loans for my clients is that I usually do a no cost loan where I pay the fees for the loan for them. That way, it is not costing them money to lower their monthly payment. The majority of people I work with prefer this option.

The other choice is that on a conventional get guaranteed approval loans tribal lenders from hummingbird company, the closing costs can be rolled into the loan balance so that you are not having to come out-of-pocket for the fees. FHA loans prohibit rolling the fees into the loan.

The main idea is that you have options to handle the fees so that you can still take advantage of lower rates and saving money.

These are the most common questions I run into as I work with my clients. It does not always make sense to refinance. However, there are ways to capitalize on the low interest rates to reduce the amount of interest you pay over the life of the loan.