Aug 6

There are many reasons you may have been turned down for a refinance, and some, like not having great credit, are obvious. We all know that lenders have tightened their belts and are unwilling to give loans to people they consider a risk. The lenders who were giving loans to virtually anyone just a few years ago are now only giving loans to those with perfect credit. While experts have seen this trend start to shift back towards a balance, there are still plenty of people getting turned down for their credit ratings. But what are some other reasons you may have been denied a Houston refinance?

Another possible reason is that your home is underwater – meaning that you owe more than your home is worth. This is a danger to the lender because if you were to default on the loan, and they were stuck with a home that’s worth less than the loan is, they’d certainly be losing money. Many people across America are underwater on their loans, because the housing bubble caused many homes to have sticker prices that were much higher than they should have been. If you’re in this situation then the best way to handle it is to continue to pay your loan off as quickly as you can so that you can get caught up with the changing value.


Aug 2

While it may not be the ideal climate in which to apply for loans with bad credit, there is still hope for those with bad credit who want to refinance. Keep in mind that you’re unlikely to get ideal credit terms. As a result, those who are just looking for a lower interest rate may not find that to be an option. Unless your original loan had an extremely high interest rate, you can expect for your new loan to have a higher interest rate than the original, or equal to. However, the main advantage is that you could extend the length of your loan which equals lower monthly payments.

If you are going to try to refinance with bad credit then the best plan is to begin with your lender. Inquire about whether or not they’re willing to renegotiate the terms of your loan and give you a longer term or lower interest rate. You’ll have the best chance if you’ve made your payments on time each month. Keep this in mind if your loan begins to be more than you can handle – there will be a lot more help if you get it right away versus waiting until you’re several months behind.


Jul 28

check your credit before refinancingFor many people, now is a smart time to look into refinancing their home mortgage. Interest rates are at historic lows, and while many lenders were nervous about extending new loans or refinances, the economy is slowly coming back and more lenders are willing to take a risk. But before you apply for better terms, take a look at your credit and make sure it’s as good as it could be.

Pay Any Small Collection Amounts

Many people have one or more small collection accounts on their credit reports. They may be $50 or $100 but they can have a big impact. Too often people believe that since they’re such small amounts they won’t have a big impact on credit scores. Think again. The reality is that a delinquency is a delinquency and anything you can do to remove it should be done. Once they’re paid, ask for a paid in full letter from the creditors – including the original account number. Often accounts are sold and the company you end up paying won’t be the original lender, but you do need the original account number in order to cover your bases.

Get Any Discrepancies Cleared Up

It’s common for credit reports to contain inaccurate information. Sometimes it’s a case of a debt you never owed, sometimes it’s a case of a debt you’ve paid still showing up. That’s why it’s important to have letters stating that you’ve paid the account in full. If you have discrepancies on your credit report, contact the credit reporting agency and ask to have them cleared up. Make sure you check all three agencies because the information on one report may not be identical to the information on another report.

Make Sure Balance Information is Accurate

There may be outstanding debts you’re working on that show inaccurate balances. This is one of the most common things that people don’t closely consider when they’re checking their credit report. While a difference of $10 may not make a difference, a discrepancy of thousands surely could. Remember that one of the many things a lender will look at is your credit to balance ratio, which essentially means that they want to see a borrower who hasn’t maxed out all their lines of credit and is paying off the credit they do have.

Document Your Income

Before you apply for a refinance, make sure you have all the documentation you need. It’s true that you won’t have to hand it over for quite some time (until the process officially begins) but remember that if you don’t give accurate information then you could end up in trouble down the road. Gather pay stubs, mortgage payments, credit card balances, information on child support, and other information before you apply. Visit http://www.refinancehomemortgageguide.com/ to get detailed information on the application process and other factors you should weigh before you decide if now is the right time to move forward with a refinance. It may always seem like a good time to save some money on your monthly payments, but if you could take simple steps to improve you credit, then it’s worth it to wait and get a lower interest rate.


Jul 25

Refinancing is a smart move for many homeowners but it can also often be a confusing process. The lenders you work with will often assume that you understand certain terms. After all, they work with these documents every day, so it’s difficult for them to know what people may need help with and what people already understand. Never be afraid to answer questions to get clarification on your loan. This is a loan that you’ll owe for many years to come and it’s up to you to make sure that you understand what you’re agreeing to.

On the other hand, many homeowners don’t know things about refinancing your home mortgage that they don’t even know to ask about. For example, do you know when to stop paying your original loan? You may think that as soon as you sign the refinance documents then you’re off the hook for the original loan. That’s not always the case. If you’re refinancing with a different lender then there may be lag between the date you sign on the dotted line and the date the 1st mortgage is actually paid off. It’s up to you to ask your refinance lender and your old lender to ensure that you’re not double paying – and that you’re staying up to date on all payments.


Jul 20

three reasons to refinanceThere are three main reasons that people choose to refinance their home mortgage. The most common is that they want a lower interest rate. This is happening very frequently these days, as interest rates are at historic lows. Even those who bought a home just 5 years ago may see interest rates that are significantly lower than the one they have on their current loan. Additionally, many people who buy a home and make their payments on time each month see their credit rating go up – which means they may be eligible for better terms in a Los Angeles refinance.

Another popular reason people refinance is to shorten the length of their loan. Many people buy a home that’s at the top of their budget when they purchase it, but as the years go by they get raises or move into different careers and their income goes up. They are then motivated to pay their home off sooner rather than later. On the flip side, people who are in shaky financial situations may choose to refinance to a longer loan, which can lower their monthly payments each month. Of course the problem is that they end up paying much more interest over the course of their loan.


Jul 15

Refinancing your home mortgage can save you money every month on your mortgage payment and it can save you a considerable amount of money in the long term as well. Having extra cash in the bank is a great problem to have, but homeowners often wonder how they can best invest this money. The best plan is to pay off other high interest debt. If you use your extra money to pay it down month by month, eventually it will be paid off and you’ll have saved even more by paying off high interest lines of credit sooner.

Another option is to take the savings from your refinance home mortgage and invest that money back in your home. Perhaps you need a new roof or the plumbing could use updating. Or maybe you’d like to make some improvements that will increase the value of your home. Adding an extra bedroom can add a considerable amount to the value of your home, and kitchen and bathroom makeovers are typically wise investments too. Any of these tips can help you to compound the savings in mortgage payments and ensure that your refinance has the largest impact on your overall financial situation.