Is Moving My Best Option – Part II

Is Moving My Best Option – Part II   See also Parts I , II, III,  IV

What Are Our Other Options?   …Renovation, Refinancing, Remodeling,  Adding On

Refinancing

If all you are looking for is saving on your monthly mortgage, before you sell and buy for heaven sake, look into refinancing.  So many lenders out there to help you with this option and rates are STILL great.

Surely you have noticed all that junk mail from on-line loan companies.  Sometimes they make unrealistic promises on how far they can reduce your monthly payment obligation.  Well you don’t have to talk to them.  You can talk to your local Realtor® for their recommendation and/or speak with a local loan originator.  Or you can walk into your bank and talk with their on site mortgage person.  You may be very pleasantly surprised on how much you can lower your rate.  You might even want to go from a 30 year term to a 15 and pay off that debt early.

They may have options for including closing costs and if you are still paying mortgage insurance (PMI or MIP), depending on your loan you may be able to reduce your mortgage by that amount simply by making a call to your current mortgage holder.  Once you have paid enough principal or your home value has increased so that your loan is less than 78% of your home’s value it is no longer required on most loans.  These reductions are not automatic but often you will be notified when the opportunity arises.

One caveat about refinancing.  Be careful about folding credit car and auto debt in to your home loan.  99% of the time you are better off paying down revolving charge and/or debt than taking away from your home equity.  Too often home owners are tempted to trade off credit card dept for home equity by refinancing more money than they currently owe.  If this is you, you may have another problem that isn’t solved by trading away your home’s equity.

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