Category: Refinance (Page 10 of 11)

Refinancing – are you one of 7+ million?

March 28, 2016 / Tom Bonetto

Mortgage rates are near historic lows, which has put millions of U.S. homeowners in the money to look at refinancing their current mortgage.

And yet, many homeowners have chosen to do nothing. Are you one of them?

Source: The Mortgage Reports

According to the Federal Housing Finance Agency (FHFA), the parent of Fannie Mae and Freddie Mac, mortgage refinance volume dropped ten percent last quarter despite sub-4 percent mortgage rates and the loosest mortgage guidelines in more than 10 years.

Homeowners that have elected to refinance, though, are saving big money.

The majority of refinancing homeowners, according to the report, have reduced monthly payments by $150 or more; and, many are using zero-closing cost mortgages to keep the benefits of refinancing high.

Homeowners doing debt consolidations are saving even more — especially with the recent changes in how lenders treat credit card debt.

Despite a drop in mortgage rates (and a loosening of mortgage lending standards), refinance volume remains off its peak. Too many homeowners feel it would be difficult to get a mortgage; or, don’t feel that a refinance is worth the time required.

Give me a call to find out if refinancing might be a good fit for you!

Understanding Earnest Money

March 8, 2016 / Tom Bonetto

The earnest money deposit is an important part of the home buying process. It tells the seller you’re a committed buyer, and it helps fund your down payment.

How Much Should You Put Down in the Earnest Money Deposit?

The amount you’ll pay for the earnest money deposit will depend on a few factors, such as policies and limitations in your state, the current real estate market, and what the seller requires. On average, however, you can expect to hand over 1-2% of the total purchase price as earnest money.

When Do You Pay the Earnest Money, and Who Holds It?

In most cases, after your offer is accepted and you sign the purchase agreement, you give your earnest money deposit to the title company. In some states, the real estate broker holds the deposit.

Always check the credentials of the firm or broker taking the deposit and verify that the funds will be held in escrow. Never give the earnest money to the seller; it could be difficult or impossible to get it back if something goes wrong.

After turning over the deposit, the funds are held in an escrow account until the home sale is in the final stages. Once everything is ready, the funds are released from escrow and applied to your down payment.

If the deal falls through, a small cancellation fee is usually taken out of the deposit, but the remainder remains in escrow. Whoever holds the deposit determines whether you should get the money back under the terms of the purchase agreement. Make sure that the purchase agreement covers how a refund is handled.

Link to Realtor.com: Understanding Earnest Money

March 2, 2016 / Tom Bonetto

Here’s my latest video regarding some great options for refinancing…

https://youtu.be/DpiNtonu81I

The Lending Coach – Realtor Video Introduction

March 2, 2016 / Tom Bonetto

Here’s a brief introductory video about Tom Bonetto, The Lending Coach. My goal is to help you expand your client base, help you find 4 more sales this year, and make your transactions as smooth as possible.

https://youtu.be/p21lcd0VreU

5 Reasons to Refinance Your Mortgage Right Now

February 29, 2016 / Tom Bonetto

One of my favorite consumer finance blogs is Get Rich Slowly. They offer common sense advice regarding personal finances to build security over the long haul. This particular post speaks to the benefits of a refinance.

Before refinancing, consider what your goals really are. Do you want to lower your monthly mortgage payment? Do you want to pay off your mortgage and get out of debt faster? What about taking some cash out for upcoming college expenses or debt consolidation?

I highly recommend you read the entire piece to get a better understanding of your refinance options. I’d be happy to sit down with you to help give some perspective to see if refinancing is a good option of you, as well!

Source: Get Rich Slowly: 5 Reasons to Refinance Your Mortgage

Refinance to shorten the term of your loan. If you have a 30-year mortgage, now may be a great time to consider refinancing. With record low interest rates, you may find that a 15-year mortgage is not much more expensive than the 30-year loan payment you have been paying.

Start by entering your information into a mortgage calculator to see what your new payment might be. If your new estimated payment is feasible, consider contacting a mortgage professional. (When we first refinanced our home from a 30-year mortgage at 5 percent to a 15-year mortgage at 3.25 percent, our payment only increased by about $200. Since the increase fit easily into our budget, the decision was a no-brainer.)

Refinance to lower your interest rate. As I mentioned before, interest rates are near a record low. And as I write this, 30-year mortgage rates are hovering above 3 percent and 15-year loans can be secured for an even lower rate. If your home is now financed at a higher interest rate, it may be a great time for you to consider refinancing. You could literally save tens of thousands of dollars just by taking the time to fill out the necessary paperwork and gather the needed documents.

Refinance to lower your payment. Refinancing your mortgage at a lower interest rate could mean drastically reducing your payment and saving tens of thousands of dollars in interest. Lowering your mortgage payment could also free up hundreds of dollars per month that could be saved or invested. Although refinancing to lower your payment could increase the term of your loan, it could make sense in your particular situation.

Refinance from an adjustable-rate mortgage to a fixed-rate loan. If you currently have an adjustable-rate mortgage, now may be the perfect time to refinance into a fixed-rate loan. Interest rates are low now, but they may not stay this low forever. Locking into a low, fixed rate can protect you from rising interest rates in coming years. Additionally, a fixed payment is easier to plan for and budget.

Refinance to cash out home equity. It’s a tempting proposition to cash out your home equity by refinancing your home. It could even be a great financial move in some circumstances. For instance, it may make sense to cash out some of your home equity in order to buy an investment property or start a business. It mostly depends on what you are trying to achieve and if you are someone who can manage your debts responsibly.