100 self cert mortgage

100 self cert mortgage
If you are a homeowner decide if mortgage refinancing makes sense in your situation, there are a number of factors you want. There are many good reasons to refinance your mortgage, despite the so-called" two-percent rule. "Here are some tips to help you decide if mortgage refinancing is right for your individual situation.

There are a number of good reasons for the homeowner, the mortgage refinancing. Many choose to refinance because they have a lower interest rate, payment amount, a new lender, or must pay equity in their homes. These are all good reasons to be against the so-called mortgage refinancing "two percent rule"

The two percent of the mortgage refinancing article

The two per cent of the refinancing of the rule says that you never refinance your mortgage, unless you qualify for a rate two percent less than you already pay. This rule is rubbish, you should chalk as ill-advised. Suppose you are, for example, a homeowner with an adjustable rate mortgage to a fixed rate. Fixed rate mortgages typically with slightly higher mortgage rates, so that may not be possible to refinance with a rate of two percent lower.

As an educated and financially savvy homeowners, it makes sense to refinance your mortgage options and cost savings basis. Completion of a new mortgage will cost money, there are lender fees and closing costs you pay to bee. You can easily calculate how long it takes you back to this expense if you are a lower mortgage payment. To calculate the break-even point simply divide the total amount you will be obliged to secure the new mortgage by the amount you save each month.

Let's say your new mortgage will cost $ 3,500 and save $ 150 per month with a lower mortgage payment. Simply divide your cost by the savings ($ 3500 / $ 150 = 24) to determine that it take two years to back your expenses from refinancing. Remember, this applies only to homeowners who refinance to a lower monthly payment. There are many good reasons to refinance, if you are not entitled to a lower interest rate or payment amount.

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Louie Latour specializes in homeowners how to avoid costly mortgage mistakes and predatory lenders. If you place your hands on this "Mortgage Refinancing Toolkit," "teaches strategies for finding the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.