Tips for getting the best from Joonago Mortgage Services
Today’s mortgage refinance rates are still historically low. You’ve probably seen plenty of media press about low mortgage rates today. Do you know what that really means and how it benefits you when it comes to mortgage refinancing? Lower interest rates equate to smaller monthly mortgage payments, but the decision to refinance your home should not be based on mortgage rates alone. You need an experienced, mortgage broker like Joe Huljak at Joonago Mortgage Services, to give you the facts and help you decide if now is the time for you to take advantage of these low rates.
Who Should Consider a Joonago Mortgage Refinance?
The two most common reasons people want to refinance their home is because they are paying more than they reasonably want to spend on their monthly mortgage payment, and they have other financial obligations they would like to take care of (other debts to pay, project expenses, etc.). Another common scenario is when a homeowner would like to ‘lock in’ a fixed mortgage rate. This entails moving from an adjustable rate mortgage to a fixed rate mortgage. Fixed rate mortgages offer the homeowner stability and a monthly mortgage payment that will remain stable throughout the loan’s remaining term; which is almost always preferable when the homeowner expects to live in the home for a long time. Homeowners may also wish to refinance their mortgage if their property has significantly decreased in value (this is referred to in the industry as an underwater mortgage) and they now owe more on their home loan than their property is worth.
If any of these situations sound applicable to you, then you should know that the type of mortgage refinancing solution available to you will depend on the type of loan you currently have and what your overall goals are.
Conventional Mortgage Loan
1. Rate / Term refinance mortgage programs give you the option to lower your current mortgage rate and/or shortening the term of your mortgage by paying off your existing mortgage and obtaining a new conventional loan at a lower rate. Lower rates mean you are able to lower your mortgage payment, which equates to more immediate disposable income. Lower terms mean the loan is paid off sooner, thus saving you thousands of dollars in interest payments.
2. Cash-out or debt consolidation refinance mortgage programs allow you to use the equity in your home to payoff high interest rate credit cards, pay for home improvements, or do with your money as you please.
FHA Mortgage Loan
1. FHA streamline refinance programs give borrowers with a current FHA loan the ability to take advantage of lower FHA streamline refinance rates and lower their current mortgage payment without the need of paying for an appraisal or going through the standard income verification (thus saving you additional money in the process).
2.The second most common FHA refinance program gives borrowers the ability to consolidate their first and second mortgage at a higher ‘loan to value’ percentage than is accepted with traditional conventional mortgages.
FHA 203k Loan
FHA 203k loans are offered by the Federal Housing Administration in efforts of neighborhood revitalization and greater home ownership opportunities. Homeowners whose homes are in need of repairs and/or improvements can take advantage of the low down payment of an FHA 203k refinance loan. There are a variety of repairs eligible for funding such as; room additions, bathroom remodeling, roofing, flooring and air conditioning systems.
Can I refinance if my home value is less than what I owe on my home mortgage?
The Home Affordable Refinance Program, also known as HARP 3.0 is for borrowers that owe more on their mortgage than the current value of their home. HARP loans allow borrowers to take advantage of the current lower mortgage rates regardless of the value of their home. The basic qualification guidelines for the HARP refinance program are that your loan must have been originated and sold to Fannie Mae or Freddie Mac prior to May 2009 and you must currently have a loan to value ratio that exceeds 80%. If you are currently making timely monthly payments, but are paying on a mortgage loan that’s worth more than your property and would like to secure a new lower rate.
Whether you would like to stabilize your loan, get cash out of your home’s equity, consolidate your debt, or lower your monthly mortgage payment, you can always count on Joonago Mortgage Services to present you with loan options that are in your best interest.