Question:

How to approach a real estate mortgage refinance?

Answer:

A real estate mortgage refinance has to be approached carefully and there are certain factors you may need to consider.

Real Estate Mortgage Refinance Basics

Do you have enough equity?

Real estate mortgage refinance can be a waste of time if your equity is not enough. Don't bother with a cash out refinance for some $10,000. You'll be paying at least $5000 in closing costs, so where is the benefit? Also, do not trade off your hard earned equity for a new 30-year mortgage just to put some more cash in your pocket. Yes, you may get some $100,000 cash, but if you don't have a clear idea how to use this money, you may end up with an expensive vacation wasting over 20 years of diligently paying your mortgage just to have it renewed.

Calculate your mortgage refinance advantages. If your real estate mortgage refinance is not for pure cash-out purposes, you are probably struggling with your monthly payment and keeping an eye on the ARM index your mortgage rate is tied to. Good timing and good credit may get you a nice conventional fixed rate mortgage to refinance.

Try a real estate mortgage refinance with your current lender. Your current lender may be your best choice to go to, especially if you have been making payments on time. They may waive prepayment penalties, if you refinance with them, as you will be doing business together again.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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