Posts Tagged ‘refinance’

The short answer that I have always believed is that if you are able to cut your interest rate at least one percentage point and are going to stay in that home for several more years, it MIGHT be worth it to refinance.

One of the best explanations that I have seen is from the USAA Mortgage, and it is just an exercise that you do to come up with the number$ that you need to make a decision that is right for you. Here is what they said:

In this example, if you were only planning to stay in that home for two years, it might not be the best thing for your pocket book to refinance.

But there are reasons to refinance other than lowering the interest rate. Some things to consider:

• Shorter term – pay off loan faster
• Longer term - lower monthly payments
• More customer service oriented lender
• ARM vs. Fixed
  

Just remember that there is more to consider than an interest rate – all lenders are not created equal. Watch out for hidden fees (and not so hidden fees). Make sure that those fees are reasonable.

And remember that there are a lot of people trying to refinance right now, so the processing time may be longer than you would think – lenders are going to process the new home purchases first, because they have a time constrain that your refinance does not have.

So take a look at it and see if it will make financial sense for you and ask questions until you feel comfortable that you understand the pros and cons.

Jim Jones can be reached at 573-529-6904. Prudential Vision Properties is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

By Jim Jones – Prudential Vision Properties

As a homeowner, you begin to accumulate all sorts of records and papers the moment you made the offer on your home. Loan documents, inspection reports, title insurance policy, home improvement receipts, appliance warranties are just a few of documents that you may at one time or another need. Would you be readily able to locate these items? Are they filed away or in different junk drawers around the house? Knowing where these items are can save you a lot of time and even money in the long run.

Consider investing in a record-keeping system. It doesn’t have to be expensive. You can purchase an accordion file and label each flap with a different category. Then use the following tips as a guide to get started.

Contracts and Legal Papers

Keep all the papers signed and/or given to you at the closing together in one place, preferably in a safe deposit box. These documents include the deed, settlement statement, appraisal, disclosures, mortgage note, inspections and any other reports, and title insurance policy. You will need these records again if you decide to refinance or sell your home.

Insurance Policies

Keep a copy of all insurance policies relating to your property together. This may include homeowners, flood and earthquake policies. With these documents, keep a list of insurance agents or companies and copies of correspondence related to claims.

Purchase and House Data

It’s also a good idea to keep a copy of the original listing of your house, comparable market analysis, floor plans, blueprints, and historical information. If you own a newly built home, keep a list of contractors and material suppliers as well.

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