Refinancing your existing mortgage is often a good idea, and a no-fee refinance program can save you thousands of dollars in closing costs, attorney fees, and other expenses that are normally charged to the homeowner. These refinancing costs are usually required upfront by many lenders, or may be included as hidden costs in your monthly loan installments. And because the closing costs for a mortgage refinance are similar to those costs that you originally paid when you bought your home, the savings can be quite significant.
Refinancing is important for many homeowners who find that their current mortgage situation is becoming unbearable. Oftentimes, homeowners will discover after a few years that their mortgages adjust to a new rate, which is the case with adjustable rate mortgages. Many of these homeowners are now paying double or even triple the amount of their original monthly mortgage payment. In this instance, refinancing is an alternative to bankruptcy or foreclosure, and can help you lower your payments by refinancing to a fixed rate.
Other mortgage holders may have fallen behind on their mortgage payments and are also looking for a lower monthly payment that is more in line with their current income. Many homeowners are quite delighted to find out that refinancing under a no-fee refinance agreement can allow them to pay their homes off sooner. Because most mortgages are refinanced to more favorable rates, you will be paying more towards the principle balance owed and less towards interest charges. Paying less interest will also save you thousands over the life of your loan.
What To Look For In No-Fee Refinance Programs
No-fee refinance programs, like any type of mortgage refinance, need to be examined closely before you close. First and foremost, you should look for a fixed rate mortgage. A fixed rate mortgage rate will never go up like the adjustable rate mortgage can, which allows you the benefit of a predictable payment that will be the same, each and every month that you make a payment. Adjustable rate mortgages are often a good idea for some borrowers - especially if you plan to be in the home for just a few years and are offered substantially lower rates by going for an adjustable rate mortgage. Most borrowers plan to stay in their homes for the long haul, however, and should only consider fixed rate offers. You should also look for a no-fee refinance program that allows you to prepay without penalty. Many mortgage lenders will tack on stiff penalties for early repayment. Always leave the door open to paying off early without penalty.
Online No-Fee Refinancing
Applying for no-fee refinancing is easiest when you select an online lender to do business with. Online lenders for this type of refinancing package are often more reasonable when offering you an interest rate and can come up with terms that you can live with. In addition, you will find the application process much easier and that you can close on your refinancing package within ten days in most cases. Although online lenders usually have a field office in your area or region, most of the paperwork to complete the refinance can be done over the Internet on a secure server that protects your sensitive information. This is the most expedient way to complete your mortgage refinance documentation, and is the reason why online mortgage refinancing goes much more smoothly than traditional refinancing, including those who are going for a no-fee refinancing program.
No comments:
Post a Comment