Thursday, November 6, 2014

Should you Refinance your Mortgage Plan

If you have decided to refinance your Bethany beach mortgage plan, you may find in Steve Morgan, a reliable Bethany beach lender.  This is the best time for refinancing mortgage plan with housing market looking favorable for home buyers. Increasingly more people are now investing in real estate with lower interest rate on mortgages.

Deciding on refinancing 

You will end up saving significantly with a reduction in your mortgage interest rate provided they are not clubbed with overwhelming charges and fees. So, you need to be careful with the math. Fees are a part of mortgage broker services. In addition, some other costs include home appraisal, insurance and credit reports. To get a sense of the actual cost, begin with a good faith estimate that shows projected cost with loans. The loan officer should be able to inform you about the total monthly payment for you post-refinancing.  As a general rule of thumb, you should be able to shave-off about 1.5 to 2 percentage points for refinancing to be favorable to you.

The rate you get should be low enough. You must have a proof of income and the ability to invest 20 percent equity. However, some lenders may require 30 percent equity for jumbo loans. When deciding on refinance do your math carefully and determine when you will break even. Explore different options with different lenders.

The current days is the best time for mortgage refinance with interest rate pendulum swinging in favor of homeowners. The location like  Bethany beach is top in demand, where you will have access to the top notch home lenders including Steve Morgan.  However, to get the best choice you need to do some math and shop around for favorable rate.