If you’re considering mortgage refinancing in Westlake Village, you should know that there are potential pitfalls you’ll need to avoid. Refinancing can save you a lot of money, but follow these tips to make sure you get your home refinance right and get the most benefit from it.
1. Honor Your Relationships
Nobody wants to be cheated on, and your mortgage lender is no different. While shopping around for the best refinance deal is encouraged, your first call should always be to your current lender.
If your history with them is a positive one, they are more likely to be flexible and willing to work with you to get you the best rate. Let them know that you’ll be shopping but you’re giving them first priority to encourage a good deal.
2. Prepare for Lots of Paperwork
Refinancing has always involved some documentation and paperwork, but the amount has increased exponentially since the housing bubble burst. Even if you refinanced before, you’ll likely be shocked by the amount of paper it takes to do so now.
You will be asked to provide lots of paperwork, and these submissions will be followed by requests for even more paperwork. After that you’ll likely have to dig up more paperwork. You get the idea. Take a deep breath and prepare yourself for this.
3. Shorten Your Term
An Agoura Hills mortgage refinance should always lower your interest rate, but it should shorten the term of your loan as well. The combination of a lower interest rate and a shorter mortgage can save you piles of money over the lifetimes of the loan.
It helps you get your house paid off more quickly, resulting in a win-win situation. Don’t be so focused on interest rate that you overlook how much a shorter term can save you.
4. Beware Costs and Fees
Pay attention to the amount of closing costs involved in your refinance and look for hidden fees. Sometimes these costs are enough to wipe out the savings offered by the refinance but buyers don’t do the math before the transaction. Crunch all your numbers with the help of your financial adviser to make sure the refinance is a smart move.
Refinancing your mortgage will require efforts much the same as securing your mortgage the first time did. Shop around, ask lots of questions and make sure you fully understand both the pros and cons of each offer before accepting one.
Still have questions? Contact us at Capstone Direct today!