Refi Madness?
In the week of December 26, 08 CNN reported that Mortgage applications were up 48% and that 80% were from homeowners wanting to lower their housing payment. Before you run out and refi make sure that it is going to truly be a benefit to your pocket book.
Every time you refinance you can be charged $2000-$3000 or more in fees. Often these fees are rolled into the loan, increasing the principal which the interest rate is applied.
Costs to refinance can include new appraisal, origination and application fees, title search, title insurance and lender closing costs. Do not get suckered into paying junk fees.
Homeowners that should refi...
Anyone with high adjustable-rate loans,
Homeowners who would lower their rate by a percentage point or more, and
Those planning to stay in their homes for a while.
The actual rate borrowers receive depends on their credit score, income and assets, and the value of the home.
Borrowers should ALWAYS request a GFE (good faith estimate). If the lender is unwilling to provide you a GFE be weary and call another lender. It is a red flag that your lender will bait and switch your loan.
In todays real estate and mortgage market the customer wanting to refi is in the drivers seat. Shop for the best rate and lowest fees.
Arizona Real Estate & Land
Phoenix Metro Property Search
www.azrealco.com
www.azrealco.blogspot.com
Monday, December 29, 2008
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