Mortgage rates are at all-time lows and everyone’s asking ‘Should I Refinance My Home?’ The answer, of course, depends on you and your family’s unique situation. But, before we get ahead of ourselves here, let’s first answer the question, ‘CAN I Refinance?’….shall we?
Can I Refinance…
…even if I’m upside down?
YES! It IS possible to refinance your home, even if it’s upside down. There are special loan programs specifically made for upside down or underwater homeowners such as:
HARP 2 Refinance more
Home Affordable Refinance Program allowing those with a Fannie Mae or Freddie Mac loan to refinance even if they owe more than the home is worth. Most lenders place a limitation on just how upside down you can be, but there ARE lenders out there that can refinance you even if you owe ten times what the home is worth.
HARP 3 Refinance (coming soon!)
The newest version of the Home Affordable Refinance Program that will allow the refinancing of even those upside down homes not owned by Fannie Mae or Freddie Mac
FHA Streamline Refinance more
Special, low documentation program designed for current FHA borrowers to lower their existing interest rates, without an appraisal OR income verification! No money out-of-pocket options are available.
VA Streamline Refinance
Streamlined refinance program specifically for current VA mortgage borrowers. No money out of pocket options are available.
USDA Streamline Refinance
For current USDA mortgage holders; an easy way to slash your USDA mortgage rates on your home and save tons of money.
…if I already have a low rate?
YES! Having a low rate doesn’t necessarily mean you are in the best situation for you and your family. For instance, by cutting down the term (how many years your loan is for), you can often drastically reduce the interest rate and save thousands upon thousands of dollars in interest! Imagine having your house paid off in 10 years? We can show you how!
…if I’ve been turned down before?
YES! Every lender has different criteria they are looking for when approving an applicant. That’s why it is so important to work with a broker that has access to hundreds of different lenders; to make sure you have the best chance for success in your new loan. The truth is that most of the people who request a rate quote here have already been denied at some point; and we are more than happy to help!
…if I’ve had a bankruptcy or foreclosure?
YES! Times, they are a changin’. Some lesser known lenders have already begun approving applications for those that are only a year out of bankruptcy or foreclosure. You may have to go through a broker with access to multiple lenders as they larger banks haven’t caught on yet.
Should I Refinance?
Now that you’ve gotten some idea of if you can refinance, let’s see if you should.
you want to lower your current monthly payments.
Rates are still at all-time lows right now. If you are looking to save money each month, you owe it to yourself to at least get a rate quote and see what your potential savings could be.
you want to pay off your home sooner and get on the road to financial freedom.
More and more applicants are choosing to change to a 10 or 15 year mortgage. Some will save hundreds of thousands of dollars in interest charges simply by reducing the term of their loan. In addition, wouldn’t it be pretty cool not to have a mortgage payment anymore in 15 years? Yup, we think so also!
you plan on moving and are renting out your current home.
With the real estate market acting like a bobble-head on a roller coaster, there are some people who believe they are simply ‘stuck’ in their current homes because they can’t sell at the price they need. So many people just like this have benefited from refinancing their current home, then renting it out. Because their new mortgage payments are lower, the rent covers everything and they are able to purchase a new home just they wanted!
you have a life-changing event such as a divorce or job change.
Unfortunately, there are circumstances when we have no choice but to refinance. A divorce, for instance, often requires that one spouse refinance the mortgage into only their name and let the other spouse off the the hook for the loan. Delicate situations such as this require a tact and sensitivity that you’ll most likely only find with a reputable broker. Oftentimes we are actually able to save people money in this situation as well, making the life transition at least a little bit easier on them.