Whether you should refinance your mortgage is simply a numbers game. Does it make sense financially to do it? Will it reduce your payment? Will it shorten years off your mortgage? What will be the payback? You have to figure out what the closing costs will be versus how much you will save each month. For example if you are going to save 50 dollars a month and it is going to cost $1600.00 to refinance. Then your payback time is 32 months ($1600 divided by $50). So you will not be saving any money until the 33rd month. If you sell or refinance again before 32 months you will have wasted your money!
Take the time to figure out what you are saving. Sit down with your mortgage broker, bank loan officer to go over the numbers. Then make a solid decision based on the numbers! If you are a Michigan home owner and would like to find out whether it makes sense for you to refinance your mortgage give me a call on my cell at (313) 310-9855 or email me at ourmortgageguy@yahoo.com Feel free to visit my website at www.russravary.com for more mortgage information, types of loans available, and Michigan real estate
Showing posts with label closing costs. Show all posts
Showing posts with label closing costs. Show all posts
Friday, February 1, 2008
Sunday, February 4, 2007
Rates were still in the low 6's for a thirty year fixed last week. I work as a mortgage broker.
What is the difference between a mortgage broker and a bank? Banks as I say have this box of rules. They have certain criteria for job, length of employment, amount of assets, amount of money you make. Then then take you and see if you fit in their box. Sometimes they can cram you in to fit sometimes they can't. Most banks have their products and one set of rate sheets. Though some are starting to broker loans out.
With a mortgage broker it is different. A mortgage broker represents anywhere from 20 to 200 different banks and lenders from across the country. If they have 30 lenders then they have 30 different rates sheets and hundreds of rates to look at. They have the ability to shop your rate or shop your loan. Every bank has different criteria for time on the job, type of employment allowed, type of home, amount of assets required, amount required to put down, amount of income required. Every month we have loans that get turned down by one lender (or bank) only to be accepted at another lender because it "fit" their criteria. That is why I love being a broker. I do not rely on one bank or one bank's rate. My clients do not have to conform to one bank's conforming box, there may be another banks box that allows self employed people, no reserves, or no money to put down.
That is what is great about being a broker. We can usually do loans that regular banks don't do because there are lenders that have less stringent criteria. There usually is not a reason for a mortgage broker to lose a loan because of the rate. Every bank has a different rate. Though they do not vary hugely. We as mortgage brokers can usually meet or beat a bank's rate. It is like car shopping. There is a bottom line cost but there are some dealers or salespeople that are willing to make less per deal and make it up on volume.
But there are instances where a bank may be exceptionally low for the market and I may be unable to find any bank to match it. I will tell you that and tell you go go with them. For example, a friend's daughter was buying a condo in Ohio. The bank was giving a 1/2 lower rate than market because they had funded the whole condo project. That brings up a second point.
Compare the costs with the rate. Be sure of the loan officer you are dealing with. There are loan officers that pull the bait and switch all the time. At closing you have different rate or different costs. Take a look at my testimonials on my website http://www.russravary.com/ and call me to talk about what you need in a loan.
What is the difference between a mortgage broker and a bank? Banks as I say have this box of rules. They have certain criteria for job, length of employment, amount of assets, amount of money you make. Then then take you and see if you fit in their box. Sometimes they can cram you in to fit sometimes they can't. Most banks have their products and one set of rate sheets. Though some are starting to broker loans out.
With a mortgage broker it is different. A mortgage broker represents anywhere from 20 to 200 different banks and lenders from across the country. If they have 30 lenders then they have 30 different rates sheets and hundreds of rates to look at. They have the ability to shop your rate or shop your loan. Every bank has different criteria for time on the job, type of employment allowed, type of home, amount of assets required, amount required to put down, amount of income required. Every month we have loans that get turned down by one lender (or bank) only to be accepted at another lender because it "fit" their criteria. That is why I love being a broker. I do not rely on one bank or one bank's rate. My clients do not have to conform to one bank's conforming box, there may be another banks box that allows self employed people, no reserves, or no money to put down.
That is what is great about being a broker. We can usually do loans that regular banks don't do because there are lenders that have less stringent criteria. There usually is not a reason for a mortgage broker to lose a loan because of the rate. Every bank has a different rate. Though they do not vary hugely. We as mortgage brokers can usually meet or beat a bank's rate. It is like car shopping. There is a bottom line cost but there are some dealers or salespeople that are willing to make less per deal and make it up on volume.
But there are instances where a bank may be exceptionally low for the market and I may be unable to find any bank to match it. I will tell you that and tell you go go with them. For example, a friend's daughter was buying a condo in Ohio. The bank was giving a 1/2 lower rate than market because they had funded the whole condo project. That brings up a second point.
Compare the costs with the rate. Be sure of the loan officer you are dealing with. There are loan officers that pull the bait and switch all the time. At closing you have different rate or different costs. Take a look at my testimonials on my website http://www.russravary.com/ and call me to talk about what you need in a loan.
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