Guide to Refinancing Your Home Mortgage Loan
Dallas Refinance Guide was created to share you valuable insight to help you no matter whether you are thinking to purchase a your initial home, or if you’re already a home-owner and are just searching for a bit of help with your Dallas refinance. We hope you’ll find the information here helpful in your quest.
Currently, mortgage interest rates are at their lowest in years. The question is, how can you get the best deal?
Everyone has been asking how to secure these low, low mortgage rates. The problem is, even when people call their current lender, many people are having trouble getting through to them on the phone. They’re pretty frustrated.
Believe it or not, it could take as long as 3 months for the mortgage market to be back to working normally, according to what one expert at Fannie Mae believes. His full year outlook for mortgage rates is 4.8 to 5%. The thing to remember is that while there will be a lot of people trying to get loans through the system, slowing everything down, the chances are good that you won’t miss out on these low rates as they look like they’ll be here for a while.
Things to keep in mind
1. Recognize opportunity
There are no 2 ways about it – this is a great opportunity. 30-year fixed mortgage rates are at 4.6%. The ‘normal’ rate, in historical terms, is in the neighborhood of 8%.. And that is significant.
Let us have a closer look at it. First, let’s take a 30 year fixed mtg at 4.6%. If you were to borrow $170,300 on a 30 yr fixed loan (the average cost of a home) if your interest rate was 5%, you would be paying roughly $915.With an 8% mortgage rate, your payment would be $1250. The savings? Three hundred thirty five dollars per month; that’s about $4000 a year.
2. Be cautious
There’s a very good chance that it will take longer to get refinanced now than it normally does. That’s just something you’re going to need to accept.And according to bankrate.com, Fannie Mae and Freddie Mac have increased their fees.
You might find yourself paying additional 1-2% of the total loan amount, possibly even more than that in addition to all the closing costs normally accounted for.
3. Find the very best rates you can
Not having enough equity in your home is the biggest obstacle facing most potential borrowers these days.Today you’ll need 20% or more in equity to qualify for the best rates.
You’ll also want to be sure your credit score is as clean and high as it possibly can be. Get copies of your credit report to make sure there are no errors at annualcreditreport.com.
Talk to several mortgage lending companies to be sure you feel comfortable with who you’ll be working with as well as getting the most competitive rate possible. Get all your paperwork together now. The following is a basic list of the documents you’ll need:
Your completed application (also referred to as a 1003; pronounced ‘ten-oh-three’ in the industry jargon), tax returns for the past 2 years, one month of paystubs, 3 months of bank statements (checking, savings, mutual funds), the most current mortgage statement you have and finally, a copy of your deed.
Please consider doing these things to get ready for your Dallas refinance or purchase loan, and you’ll likely be in excellent shape as you move forward to get what you want out of your new mortgage loan.