| Mortgage refinance can be a nightmare and a | | | | insurance costs because of your low equity mortgage |
| headache if you don't know which way to go. And | | | | refinance loan. In order to determine if you qualify, you |
| taking a wrong turn could mean financially dreadful | | | | can call the firm to which you forward your payments |
| repercussions. With a bit of advice, the way ahead | | | | monthly and find out who owns your loan. If yours is |
| can be made much easier. | | | | owned by Fannie Mae or Freddie Mac, then you have |
| Tips You Sure Can Use | | | | better chances of getting approved. |
| 1. Take advantage of free lock-ins, preferably with a | | | | 4. Be wary of FREE application costs. Anything free |
| minimum of 60 days. Usually, it can take more or less | | | | would seem like a really huge blessing, but keep in mind |
| forty-five days from the day of application to close. | | | | that in terms of mortgage refinance, free can come |
| But there are times when two-month delays can | | | | with a price. Instead of focusing on looking for |
| occur, and even more! So look for lenders who are | | | | applications offered at zero cost, focus on the interest |
| willing to offer you a free 60-day lock-in. But when it | | | | rates and points. You may be in for the shock of your |
| comes to mortgage refinance, you have to be | | | | life when huge fees land at your feet right before |
| cautious and ask all the right questions. You may be | | | | closing. |
| promised a free lock-in, but your loan officer might | | | | 5. Make intelligent comparisons of interest rates. You |
| charge you a fee or a very high price for lock-in | | | | can do this by sticking to a constant number of points. |
| protection. | | | | Equate each point a .25 of 1% change in the interest |
| 2. Use your rescission rights. If you don't like the way | | | | rate. Your goal here is to work with a lender who |
| your deal has turned out right before closing, you can | | | | offers the lowest interest rate. If numbers are too |
| still re-negotiate or go back to square one. Don't force | | | | confusing for you, then ask around. There are always |
| it if it's a deal turned sour for you. Keep in mind that | | | | people who are willing to share their experiences with |
| you're given three working days from the date of | | | | you. |
| closing to think things through. In case you decide you | | | | Don't be lazy when it comes to your mortgage |
| don't want the deal, inform the loan officer in writing | | | | refinance. Keep in mind that you're doing this to save |
| before the three days are over. In turn, the lending firm | | | | some money. It's like upgrading a car to a more |
| has twenty days to refund your fees. | | | | efficient, cost-effective model, but you don't like to get |
| 3. Little equity can still qualify. As long as you do your | | | | ripped off while you're still in the process of securing |
| homework and search for a lender who's willing to | | | | for the best deal. So keep your wits about. Don't be |
| underwrite small equity, then you're still in. And there | | | | afraid to ask questions, and don't sign or give in to |
| are market players out there who cater to borrowers | | | | anything before you're satisfied that what you're doing |
| with as low as 5% home equity. Be careful, though, | | | | is in line with your overall goals. |
| because you might be saddled with higher mortgage | | | | |