Now is the time to refinance!!
VA Mortgage & FHA Mortgage Refinance solutions:
If your ARM (adjustable-rate mortgage) is adjusting - lock in a low rate with a 30-year fixed VA Loan or FHA loan. If you have a high interest rate stop wasting money and get a lower rate and payment. If your home needs repairs - get cash out to make home improvements. FHA offers up to 85% cash out. If you have outstanding debt - combine it into one lower monthly payment with a possible tax deduction. If you're in a jumbo loan - loan limits have changed - see if you could qualify for a new lower rate or an FHA or VA Mortgage Refinance loan!
Tips on when to refinance:
FHA Refinance mortgages are not just for first-time home buyers. FHA Refinance loans can help people get out of toxic debt situations caused by sub-prime mortgages with interest rates that have spiraled out of control. There are several ways to get into an FHA Refinance home loan. The advantages include a low fixed rate mortgage guaranteed by the FHA Refinance program, predictable FHA mortgage payments and lower interest rates for those who qualify.
Important factors to keep in mind about your VA Refinance include:
A cash-out VA refinancing loan is a VA guaranteed loan which refinances any type of lien or liens against the secured property. The liens to be paid off may be current or delinquent, and from any source. (tax or judgement liens, VA Refinance, FHA, or conventional mortgages). An appraisal is required and you must qualify based on income and credit. Loan proceeds beyond the amount needed to pay off the liens may be taken as cash by the borrower for any purpose acceptable to the lender. Cash-out VA refinance loans can be for up to 100% of the appraised value of the home. The loan must be secured by the first lien on the property.
It doesn't make sense refinancing when you shouldn't. So, check out the mortgage refinance tips as given below and get an idea on when to refinance. Build up equity: It is feasible to go for a refinance when you have built up at least 10% equity in your home (For Fannie Mae owned mortgages, the value is 5%). It is also possible for you to choose the option if your equity is less than 5%, but you may have to pay a certain amount of cash in order to make up for the difference in equity. Check if current market rates are low: It's better to follow the 1% Rule which suggests that you can enjoy the benefits of a home mortgage refinance if you get an interest rate 1% lower than that on your current loan. The interest savings will help you recoup the costs you've paid for the new loan provided you stay in the property for a certain period of time (break-even period). However, there are no-cost as well as low-cost mortgage refinance loan wherein the costs are included into the loan. But you can expect comparatively higher rates on such loans. Moreover, these loans are limited when the market is in a credit crunch.
Pay off any late payment: There is no such limit on the number of times you can go for home refinance loans. Most lenders prefer that you have no late payment for the past 12 months before you switch over to a new loan. Remove negatives and improve credit score: Pull your credit report from the bureaus and review it for any negative items (late pays, collections etc) and inaccurate detail. Try to dispute negative items and remove them from the report. If required pay off any unpaid debt. Otherwise, you won't get a low rate and may not even qualify. Of course there are lenders in the subprime market who may offer you a bad credit mortgage refinance loan, but it's better to avoid them as they'll possible charge higher rates and fees.
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