Property Manager MA: How to refinance your Mortgage
There are two types of people: the sorts who get the opportunity to refinance their mortgages while there are those who are stuck with the same rate of mortgages for the rest of their lives. Those who are able to refinance have planned ahead. Luck is a factor though it doesn’t matter as much as planning. This guide takes a look at the steps to take before refinancing a mortgage.
A down payment of 20 percent is likely to get you a competitive mortgage. If you are able to pay more than that go ahead as it will allow you to hold the cards when it comes to refinancing later on. The bigger the payment, the more likely you are to get a good equity cushion. It also protects your loan from price fluctuations.
They say that you should always look at the fine print of the terms of your mortgage. It is a good idea to examine it with a fine tooth comb so that you will know what the penalties are for early repayments of the loans. Usually there are penalties which could prevent you from refinancing your mortgage in the early years. If the penalty payments are lower than the money you will save refinancing your mortgage, then go for it.
A good credit history will go a long way especially if you want to refinance your mortgage. The chances of getting it refinanced are very good as you will not be a credit risk. Those who have a horrible credit history will have to qualify all over again and that does not bode well.
Property Manager MA: Good maintenance
Make sure that you maintain your home really well because a well-kept house is a factor when it comes to refinance. Refinance vendors will always look at the value of your home and the amount you need to borrow. So it’s important not to let the value of your house deteriorate, so that you can have an equity cushion.
The most important aspect to remember before refinancing is whether you are looking at the right type of mortgage or not. If it’s an early stage 30 year loan, then go for a 30 year refinance rate. Later on you can switch to a 15 year loan. During the last 10 years you can shift to a short term adjustable rate loan.
The irony about refinancing is that the best situation is never to have refinance rates go low enough for refinancing to make sense — that would mean you had been getting the lowest mortgage rate possible all along. Thinking ahead can help in this respect too, by buying when rates are low and comparing mortgage rates to get the best deal right from the start.
We hope you liked our guide “Property Manager MA: How to refinance your mortgage”.