We receive many calls a day about refinancing and interest rates. While we are not lenders, we would be doing our clients a huge disservice without knowing this information. Being able identify “inflated” lenders fees and “artificially increased” interest rates is important to best protect our real estate clients.
When it comes to our real estate clients, some just want to refinance. They don’t want to sell their home. They are not interested in doing a Short Sale. Nor, do they want to approach their bank in a attempt to modify their loan. They only want to refinance their home from a 6.0% interest rate to a 3.75% interest rate – 30 Year Fixed. (latest call from a client that purchased a few years ago and the interest rate they had and what they got!)
The problem comes in with the “value” of their property. However, getting how much the “bank” would consider their property worth – would be more accurate. The property owner may view their home as being “unreasonably” higher in value than the FMV – Fair Market Value. With all of the, “we will tell you your home’s value” websites out there, – I cannot blame them. If you are a homeowner and want to get the actual value of your real estate – short an appraisal that will cost you about $500.00, call us or email us and we will do the market analysis for nothing(free)!
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Rates are low, very low, historically low, but can you refinance? This is a question that many homeowners are asking themselves, with many not even trying because while they are reading about the incredibly low rates they are also reading how hard it is to secure these rates. Homeowners have been extremely challenged in recent years and not many feel up to another challenge. However, if you could acquire a rate of 3.5% or lower, wouldn’t you want to?
Imagine how much a homeowner could save over the lifetime of a loan if he had a loan of 3.5% compared with 5.5% or higher. 5.5% is a great rate, but let’s face it two whole percentage points makes a big difference in monthly payments and a HUGE savings over the time that you hold a loan.
So, is refinancing your home a possibility and is approval for today’s low rates possible? Hopefully! A recent article from the Wall Street Journal, “Getting the Best Refinancing Deal” suggests that even if you can’t get the lowest rate possible you will get a low rate and it is worth the effort. Your best shot at refinancing success starts with cleaning up your credit and having all of your financial documentation in order.