Consider Your Refinancing Options
Did you know that homeowners who hold a VA or FHA mortgage
most likely can renegotiate their opposed to refinancing.
Both the Federal Housing Authority and the Veterans
Association offer a mortgage process called ‘streamlining.’
The refinancing options are devised to provide more
the best financing for consumers remit their payments
in a timely fashion. Most importantly, streamlining
will not increase the size of the loan. The concept
is based upon the fact that homeowners who demonstrate
a good payment pattern with their existing mortgage
demonstrate they are capable of making steady stream
of reduced payments.
Alternatively, loans originated over the past few two
years, may require only a one-page loan modification
form. Normally the fee for the loan modification is
under a thousand dollars. For the consumer who recently
signed loan documentation, it is best to ask a lender
whether a loan modification is even a possibility.
In essence, refinancing is verisimilar to making a
new mortgage loan. The underlying difference is that
the home property is in the mortgage shopper’s
possession. As result, the down-payment should be unnecessary.
However, all new documents and underwriting must be
completed all over again.
For example, there may be a new application fee, points
fee, survey, title insurance, and closing costs. Refinancing
is tantamount to starting over. It can consume up to
two months and be equivalent in the cost of obtaining
a new loan. Fortunately, state and federal law protect
consumers from being taken advantage of predatory lenders
to make an informed decision.
Regardless if it’s a homeowner’s first
or second mortgage, federal law mandates that the lending
institution disclose all costs of the loan. In fee associated
with processing the loan should be revealed to a homeowner.
The following fees are fees that apply both to refinancing
or obtaining a new loan:
• APR annual percentage rate
• Interest rate
• Appraisal fees
• Escrow fees
• Underwriting fees
• Fees for the lender's attorney
• Any other service charges