The 10 Biggest Mistakes When Financing Your Home

1.  The new interest rate does not justify the refinancing

Before you go ahead and refinance your mortgage, you have to make sure that the change will save enough to justify the whole process of refinancing. As a rule, if the interest rate does not decrease by at least .0075 (.75 %) to .01 (1%) the refinancing is probably not a good move.

2.  Not knowing your real closing costs

Closing your mortgage is usually a charged service. By law (in the United States), closing costs must be disclosed within 3 working days of the loan application. Each lender has is own way of calculating the closing costs. Initially, your closing cost are an estimate. However, once your specific loan details are known, the closing costs are no more a mystery. Use the worst case scenario, if you still make a profit with that scenario, and if your new interest rate justifies it, you can consider refinancing.

9 Things You Need To Know BEFORE You Buy a Home

1. Get pre-approved BEFORE you look for your new home
Of all the steps to de before you buy a home, the pre-approval part is the easiest. One of it's benefits: It will give you complete peace-of-mind while you are looking for a home. The best part, it's usually free. Your local lending institution can give you a written pre-approval with no obligation on your part. Getting pre-approved means money in the bank! Being pre-approved means that you have a guarantee of obtaining a mortgage up to a specified level.

Featured Properties