Category: Refinancing

Common Mistakes When Buying & Refinancing

When buying or refinancing a house, you will want to avoid common mistakes. If you can do so, you will save money and help your cause greatly. With this in mind, here are the top four common mistakes to avoid when you want to buy or refinance a house.

Mistake 1: Not Understanding Rates

First and foremost, when you borrow tens of thousands of dollars, you will want to know as much about rates as possible. At Benchmark, your mortgage professional will help you do so by reviewing your credit score and letting you know exactly where you stand. They explain what the current rates are and help determine which loan product will best fit your financial needs. This will allow you the opportunity to learn how your monthly payment can change drastically by knowing how the rates and loan products work.

Mistake 2: Ordering Your Own Appraisal

Now, if you are refinancing your property, don’t think that in addition to a Benchmark Appraisal you are required to independently verify the value of your house. Benchmark’s Appraiser Panel is staffed with many of the local appraisers found in your area. At Benchmark, we ensure that you receive top quality appraisal reports so that there is no struggle to enjoy the lowest rate when you refinance your home.

Mistake 3: Looking At Entire Costs

All-too-often, a buyer or homeowner will forget to look at other costs associated with the loan. Sadly, they can add up quickly and leave you with thousands of dollars of fees added on to the loan. To avoid this, look at the paperwork and ask questions with your Benchmark Mortgage professional. If you feel it contains inaccurate information, speak up. Your Benchmark Mortgage professional will help ease your concerns and answer any questions you may have. We understand that wasting money on closing costs and other fees is the last thing you want to do so we are here to help assist you every step of the way.

Mistake 4: Not Fixing Credit

Finally, when buying a house or refinancing, you will want to clean up your credit and pay off old debts. If you don’t, you may not qualify for the lowest rates possible. For example, if you have a score of under 650, you may end up paying more than a person with a score above 750. So be sure to pay off any old debts, fix any errors on your report and catch up on any late payments. Otherwise, you may end up paying a higher interest rate.

With these four simple tips, you can ensure your refinance or house purchase goes smoothly the first time around. Remember, you need to protect yourself and avoid common pitfalls others make. When doing so, you will save money and speed up the process.

HARP 2.0 Has Arrived

by bmadmin

What is the Home Affordable Refinance Program (HARP)?

Announced in the beginning of 2009, HARP is a federal government program created to help 5 million underwater or near-underwater homeowners refinance into a fixed rate loan with a lower monthly payment. However, as of Aug. 31, 2011, only 894,000 borrowers have actually refinanced through HARP.

In October 2011, President Obama announced a makeover to the HARP program with the purpose of reaching more underwater homeowners. The expanded HARP program – also referred to as HARP 2.0 – took effect on March 17, 2012 for eligible borrowers.

How do I find out who holds my mortgage?

There are two eligibility requirements for the HARP program:

1. Your mortgage must be held by either Fannie Mae or Freddie Mac. To “look up” your mortgage, check Fannie Mae. If you can’t find your mortgage there, check Freddie Mac. Your loan must be owned by one of these two choices to be eligible for HARP 2.0.

2. Your loan must have been funded by May 31, 2009.

How do I know if I am eligible for HARP?

You can find out if you are eligible for HARP by contacting me today.

5 Reasons for a Mortgage Refinance Other Than Lowering Your Payment

by bmadmin

Naturally, if you’re paying 6% for your mortgage and you can refinance at 5%, you’re gonna do it. Although cutting your monthly payment remains an important motive, there are at least five other reasons to consider a mortgage refinance, for long-term savings and convenience.

1. Change your mortgage term

If you decrease the term of your mortgage in a refinance by going from a 30-year to a 15-year, you’ll pay a lower interest rate and shorten your total interest costs. You’ll build home equity more quickly, and pay off your loan sooner, even though your monthly payments go up.

2. Move from an adjustable rate to a fixed rate

ARMs offer low introductory rates, but they also offer long periods of uncertainty that make it hard to budget. It makes sense in a mortgage refinance to go from an ARM to a fixed-rate loan during a low-interest rate environment. You’ll get emotional security and your rate won’t fluctuate with changing economic conditions.

3. Take out cash

With a cash-out mortgage refinance, you can turn an intangible asset—accumulated home equity—into a tangible one—cash. It makes sense for a project that will generate long-term benefits, like a home improvement or funding a child’s college education. However, don’t do it for frivolous reasons. Unless you’re extremely disciplined, you could find yourself in even deeper debt.

4. Consolidate two mortgages

When interest rates are low, a mortgage refinance lets you consolidate your main mortgage and an outstanding home equity loan to realize a lower overall monthly payment. Plus, you’ll have only one mortgage payment to make each month.

5. Recover from divorce

If your home is jointly owned with your soon-to-be ex-spouse, a mortgage refinance will turn a joint obligation into the responsibility of the person keeping the home. Nothing is more frustrating than tracking down a former spouse who doesn’t keep up with his or her end of the mortgage payment.

Lay the groundwork

If one of these reasons resonates with you, contact us to see how refinancing could benefit you.