Qualifying for refinancing is difficult. It isn’t necessarily easy for anyone, even with a good credit history. Nevertheless, refinancing your mortgage can be done, as long as you are eligible. By knowing the facts and avoiding the myths, you can better your chances of qualifying for a mortgage refinance. The Biggest Myths
- Refinancing doesn’t come at any extra costs.
- You can’t refinance because it has been too long since you applied for refinancing or a mortgage.
- You will be losing equity or building equity will be a slower process.
- You have poor credit, so you can’t refinance.
- You will have to start your loan all over again.
- You must refinance through the same banking institution.
- You should own your home for many years before refinancing.
- It isn’t worth it to refinance.
Mortgage lenders and brokers hear all types of misconceptions while they are talking to their potential clients. Allowing these misconceptions to stand in the way of you refinancing can hinder both your financial state and the state of your current mortgage, which is why it’s best to learn about these common mortgage refinancing myths.
If you are unsure if refinancing is a right decision for you, consult with an expert. In most cases, refinancing is a wise choice. Nevertheless, it isn’t for everyone and you will want to learn more about what refinancing entails before you decide to apply. Refinancing could very well lower your interest rate and make it easier for you to pay off your home quicker.
Very rarely will you have to worry about paying any out of pocket expenses for refinancing. Nor will you have to be concerned with prolonging the amount of time it will take to pay off your refinancing loan. The purpose of refinancing is to shorten that timeframe and to focus on paying off the home even sooner with a lower interest rate. Prior to applying for refinancing, make sure you pay attention to the average percentage rates during the time. Always apply when the rates are low.
The benefits of applying for a refinancing loan greatly outweigh the cons. You could end up saving a lot of money as long as you play your cards right. Remember, you don’t have to go through the same banker to refinance although it may be the quickest way considering the bank will know your ability to pay the payments on time. For more information on how you can save through refinancing, contact Northwood Mortgage™ today.