Are you currently, in a situation where the value of your home loan exceeds the value of your house. You’re looking to reduce your mortgage payments? Perhaps you’re interested in transitioning from an interest rate mortgage to a fixed interest rate one. Regardless of the reason there are opportunities for refinancing a mortgage. Yes it’s true! Even if you find yourself owing more than what your home’s valued at there are assistance programs designed to cater to a wide range of borrowers.
Here are some common inquiries people have about refinancing a mortgage;
What exactly is an Underwater Mortgage?
An underwater mortgage occurs when the amount owed on a home loan surpasses the value of the property. For instance if your house is appraised at $250,000 but you still owe $300,000 on your mortgage this indicates that you are underwater or have equity in your property.
Why should one consider Refinancing?
For individuals with mortgages refinancing involves obtaining a loan to replace the existing one with the aim of reducing monthly payments securing lower interest rates or switching from an adjustable rate mortgage to a fixed rate one. In instances having equity in your home may not be necessary for refinancing long as you meet the criteria, for various specialized refinancing programs introduced in recent years.
Am I eligible, for refinancing?
There are now options for borrowers to refinance their current or investment homes regardless of how much they owe. To find out if you qualify follow the three steps below.
How lenders should I approach for refinancing my mortgage?
If you have a mortgage it’s advisable to contact at one lender other, than your current bank or servicer. Rates and fees can vary significantly between lenders so it’s worth shopping to find the best deal.
What if a lender refuses to work with me? Can I still refinance?
If one lender turns you down don’t lose hope. Keep exploring your options and reach out to lenders. Each lender has its set of guidelines which may differ from government regulations and could offer flexibility.
Unlock the secrets to realtor success by overcoming common challenges with proven solutions! Visit our website for more information.
Explore more about How to Stop a Foreclosure
