Tricks to Refinancing your home…even if you don’t think you can qualify!

Tricks to Refinancing your home...even if you dont qualify!

Many people are taking advantage of refinancing! I mean this is history right now with lowest rates in decades! But what about those who are in their home and aren't sure if they qualify? Here are the tricks to refinancing.

1. Where do I get the best rates?

You can shop around! However, it is confusing as some people say they will give you no costs. I know one person that told me, I got the greatest deal with no costs but his interest rate was pretty high. Don't fall for no costs. Be sure to compare APR's as those will include costs. The best place we have found closing costs and rates have been local mortgage broker. Tim Peterson tim@rightsidelending.com or Sandy Lowe sandy@silverrm.com

2. What do I ask for to compare costs?

Ask for a Good Faith Estimate. This is a standard form that everyone should give you that includes your rate and all costs. You can look at all the closing costs and the interest rate on this. There is a rate called an APR...this is not your interest rate but is calculated to show you what all your costs are including your interest rate and closing costs.

3. How do lenders get paid?

Lenders get paid according to your interest rate. They also get paid according to the costs they charge you. For instance, if a lender is giving you a 5% rate..they may be getting paid 1 point in the back. (A point is 1 percent of the loan.) If they give you 4.5% they may have to pay the lender money to help you get that rate. If they are charging you 6%, they may be getting paid 2 points. Any fees on the estimate that show they are paying the broker is also what they get paid. Many times this will be an origination fee and a processing fee. There are processing fees that go to wholesalers that the lender cant change.

4. What if I can't qualify?

If you can't qualify call the lender who you have your home's mortgage with now. Many self employed people will need to do this as well. Every lender is different. My current mortgage lender was willing to refi my house with no closing costs and I didnt have to do the entire verification process. Some lenders of mine in the past just sent me a paper in the mail to sign. Don't give up if you don't think you can qualify. Call your lender and see what they can do for you.