Refinancing
If you want to refinance your home, the rule of
thumb is 2 percentage points. However, there
are several other factors you should consider.
For instance, if you have not owned your home
for at least a year, this rule of thumb is greatly
effected.
Most lenders want to see 2 years on the job and
less than 40% of your gross, joint income going
to pay off debts. However, even if you are
above 40%, a new mortgage situation can easily
bring you under this 40% mark and it's your
situation after a refinance that we will explore.
Credit
If you have excellent credit, you may be able to
borrow more than 100% of the home's value.
Fair to Poor credit generally requires at least
some equity.
Since few lenders have very aggressive lending
criteria, most lenders will only make an equity
loan or refinance if you have either 30% or more
equity in your home or good to excellent credit.
We specialize in aggressive lending
situations!
Loan Terms
Keep your loan term as short as possible, get a
15 year loan. As an example of the savings you
would get on a 100,000 loan at 8% interest. The
payment over 30 years would be $733.76 and
you would pay $164,155.25 in interest over the
life of the loan. If you got a 15 year loan your
payments would only be $955.65 per month,
you would save over $90,000 in interest
payments over the life of the loan and have
your house paid off in half the time. Definitely
worth the extra $222 per month!
