Refinance Home Mortgage Guide

If you are in the process of refinancing your mortgage there are steps you can take to ensure the process goes smoothly. The first step you can take is to keep in touch with your lender and quickly respond when they ask you for information. Stay on top of your loan status by checking in with the mortgage representative every few days to check the status of your loan. Organize your notes and keep a record of your contacts with the mortgage company.

Make sure you provide all required documentation in a timely manner. By organizing your documentation before you apply, you will make your life easier during the application process. Here are the documents you will need during the mortgage refinancing process.

The real estate purchase contract for your home.

Your bank account statements, two months worth of pay stubs from your employer, and your w-2s or tax records for the last two years.

The most recent statement from your current mortgage company with the payoff balance and their 800 number.

By organizing your efforts prior to applying for the new mortgage the process will go much more smoothly. To learn more, register for our free mortgage guidebook. Apex Mortgage Refinance

If you are considering refinancing your mortgage you might wonder if refinancing is the right decision for you.  There are a number of factors to consider when answering this question; refinancing a mortgage costs money, your lender will charge you fees during the process.  In order to make certain you are not losing money during the process you need to take this into consideration with your present mortgage.

Here is what you need to consider:

How long will you live in your home?  If you plan on moving within two or three years you may never recoup your expenses from refinancing the mortgage.  The longer you stay on the property, the more you will save from refinancing.

Does your present mortgage have a prepayment penalty?  If your current loan charges a penalty for refinancing you could lose any savings to that penalty.  Review your loan contract carefully to see if it includes this penalty.

To learn more about refinancing your mortgage and avoiding common mortgage mistakes, register for our free mortgage guidebook.

Cleaning up your credit is an important part of qualifying for the best mortgage loan.  If you are in the process of refinancing your mortgage and have not tuned-up your credit first, you are making a big mistake.  Here is what you need to know to fine tune your credit rating.

Before you do anything else you need to make sure your credit records are accurate.  Request copies of your credit reports from the three credit agencies; once you have these records go over them with a fine tooth comb for errors. If you find errors you will need to dispute the errors with the individual credit agency and the creditor responsible for placing it there. 

Once you are certain that your credit records are correct, you need to concentrate on your repayment history.  A large portion of your credit score is derived from your repayment history; late payments have a negative impact on this score.  You need to have at least six months of on time payments on your credit record before you start shopping for a new mortgage.

The next step in polishing your credit score is to pay down the balances on your credit cards and close accounts you do not need.  The lower your debt-to-income ratio, the higher your credit score will be.  Do not make major purchases before applying for a mortgage; any credit inquires and financed purchases will damage your credit score prior to refinancing your mortgage.

When you are ready to begin shopping for your new mortgage, protect your credit score.  Do not allow lenders to run your credit until you have selected the mortgage offer you want.  You will need to request “no obligation quotes” from prospective mortgage lenders.  This will require you to provide the lender with an assessment of your overall credit picture to receive the quote.  Do not inflate your income or credit standing when shopping for quotes.  If you do this the lender could change or retract the offer when they see what your credit actually looks like.

Doing your homework before applying for a new mortgage will help you avoid mistakes that can cost you thousands of dollars.  For Chicago Mortgage Refinancing register for our free mortgage guidebook.

The Federal Reserve is believed to be raising short term interest rates again later this week. If it does raise interest rates this will be the 16th rate hike in less than 24 months. For homeowners with adjustable rate mortgages trouble is waiting just beyond the horizon.

Mortgages with adjustable interest rates were extremely popular over the past several years. Many homeowners leveraged their financial futures to purchase dream homes that they could not afford. The problem with these mortgages is that introductory periods, and the cushy monthly payments that go with them, are rapidly coming to an end.

The bad news when it comes to adjustable rate mortgages is the lender will periodically adjust your interest rate. When this happens your monthly payment amount will change accordingly. When this interest rate changes your monthly mortgage payment can increase dramatically; recent interest rate hikes will cause the monthly payment on a $150,000 mortgage to go up around $200.

If you are a homeowner faced with impending financial problems due to rising mortgage payments your options are somewhat limited. If you purchased too much home for your budget, selling the home may be the only sure bet. If you refinance to a traditional thirty year fixed rate mortgage your payments may go up significantly; however, you will be able to count on them remaining at that amount.

If you are still in the introductory period of your adjustable rate mortgage the next two years could be financially troublesome. Expect to see growing interest payments over the coming years. The number of homeowners with impending mortgage troubles has even caught the attention of the government. There are new standards for adjustable rate mortgages proposed to keep people out of trouble.