Refinancing

One of the biggest questions that most individuals that have a mortgage ask is “should I refinance my current loan.” The answer to this question can be complicated at times since there are many factors to consider when and if you pursue a refinance. The days when the simple answer was “if you are saving a point on your current rate, you should refinance” are long gone. Today, with the incredible changes that have hit our housing and financing markets, making the decision about a refinance is based as much on the program and loan type you have as it is the current rate you have verses what is available on the market. In general, a refinance is a good idea when a “tangible benefit” is achieved by the home owner that helps them attain a better financial position in the regards to their current mortgage and housing situation. At Mortgage Solutions of Georgia, we advise our clients when it is best to take advantage of these situations and even when it is best to keep the current mortgage and forego a refinance.

There are many factors that can weigh in on one’s ability to perform a refinance, but probably the most notable and worrisome one that most people consider today is the appraisal. With property values at 20 year lows based on the high foreclosure fallout from the recession of 2008, many people have found themselves with a mortgage balance higher than their current appraised value, or “underwater” which is the term commonly used to describe this scenario. Although this can make a refinance challenging, it does not means it is impossible. There are a number of special programs that can be of assistance to help home owners save money monthly, such as the FHA and VA Streamline programs and even the HARP I and II programs. Most programs like these are based on the type of current mortgage you may have and consulting an experienced mortgage professional is essential to the process to determine eligibility for the program and expedite the closing process.

Income, work history, credit history and credit rating are other major factors that can affect the approval of a refinance loan. Although we cannot help with income and employment, at Mortgage Solutions of Georgia we can help you achieve a more favorable credit rating and history. This is done by using our extensive credit knowledge and working with our tried and true credit program, Lending Hand, which is offered by our credit provider. Lending Hand is not credit repair, but instead credit enhancement based on your current credit profile and the desired credit rating necessary to attain credit approval for your desired loan type. This process can often take long periods of time to accomplish and can involve guidance from our team for months on end, which we are prepared to do.

Even though the market has changed and limited the types of loans available from what they were years ago, there still are plenty of refinance options available and the input of mortgage professional is critical in making the correct decision for your financial well being. Whether you are considering refinancing your primary residence to use your equity to pay down other debts, performing a streamline refinance to take advantage of a lower rate and term, or even considering a reverse mortgage to supplement retire income, Mortgage Solutions of Georgia will be there to guide you to financial security. We understand the mortgage on your home is normally the biggest financial asset, tool, and responsibility you will ever have and we want to guide you to help you make the best decisions based on all of the choices available to you. At Mortgage Solutions of Georgia, we don’t just consider you our clients, we consider you our friends.