5 Misconceptions About Mortgage Refinancing

Mortgage refinancing can be a good option for homeowners, as it enables them to reduce their monthly payments and save money overall. If you want to look into it a little further, it would be wise to get in touch with an expert who can be objective and answer any questions regarding this financial method.

Things You Should Know About Mortgage Refinancing

1. The Interest Rate Is All that Matters. It’s a common misconception that when it comes to mortgage refinancing, the interest rate is the only factor to consider. When it comes down to it, it may seem like a good idea to choose a mortgage solely for its low-interest rate. However, paying a high rate while focusing on the interest rate, you might end up paying more. It’s critical to look into the other costs that come with the mortgage and bundling them with your monthly payments, such as the closing costs, application fees, and more.
2. Refinancing Costs Homeowners Nothing. Although the refinancing is something that benefits the homeowner, there are still costs incurred when it comes to the process. There may be a wide array of costs that need to be considered when refinancing, such as the closing costs and application fees. In addition to that, some fees are applied to the homeowner by the lender, like the origination fee. The costs of mortgage refinancing will vary from one lender to the next, and it’s best to contact an expert who can discuss fees with you in-depth.
3. Refinancing Influences House Selling. Mortgage refinancing and selling your house are two different things, and they shouldn’t be tied up together. The seller is just not obligated to sell the home if the homeowner decides to refinance his mortgage. In certain cases, it’s more desirable to refinance the mortgage before selling the house to obtain the best deal for both parties. Everything is more or less circumstantial, though, depending on the terms and conditions of the mortgage refinance.
4. Credit Checks Are Not Needed. One of the most common misconceptions with mortgage refinancing is believing that credit checks are not necessary. But in reality, credit checks are a crucial step in the mortgage refinance process. A homeowner’s credit score is a basis for their personal loan eligibility, so the credit report is considered to ensure that everything is in order.
5. Mortgage Refinancing is Only Done Once. It would be inaccurate to consider mortgage refinancing a one-time venture, considering that the procedure can actually be done more than once. If you’re looking for a way to save money, or else you’ve had a rise in income, take your chances and choose to refinance your mortgage to secure lower monthly payments.

Your Team at America’s Mortgage Solutions

It would be beneficial to uncover any misconceptions that are circulating regarding the mortgage refinance process to have a full picture so you are informed as possible when it comes to the subject of mortgage refinancing.

Need a mortgage refinance in North Palm Beach? America’s Mortgage Solutions and our home loan experts are dedicated to ensuring your home purchase or refinance is smooth and stress-free. Call us at (561) 316-6800!