4 Types of Homeowners Who Should RefinanceHome Buyers \ February 23, 2015 10:00 am
The recent drop in home mortgage interest rates is impossible to ignore (especially if you keep up with this blog) and it has really opened up the door for existing homeowners to lock in some better rates on their current mortgages.
The problem is that a lot of homeowners are unsure if it's the best financial move for them. Well, today we will clear this up for at least four of the different types of homeowners who most certainly should look into refinancing right now.
Homeowners Still Paying Mortgage Insurance, Especially LPMI
With mortgage rates down as low as they are presently and home values up, this creates a opportunity to rid yourself of paying that monthly mortgage insurance. This is especially true if the buyer is locked into a deal with LPMI.
Now is a great time for homeowners who have LPMI mortgages to refinance.
LPMI, lender-paid mortgage insurance, is one type of mortgage insurance that adds the cost of the insurance to the overall mortgage loan itself. So, a buyer who was originally quoted for a home loan at say 5% and ended up getting a LPMI mortgage loan that would end up being upwards of 5.25% for the entire duration of the loan.
Homeowners with Mortgages at 4.5% Interest Rates
For homeowners with original home loan interest rates sitting at 4.5% interest or above, it's time to look into refinancing. Shockingly, over 4 million homeowners in the US have interest rates above 5%. That is pretty high with the low rates available right now. If this is you, it's time to contact a mortgage lender ASAP and see about getting refinanced.
Homeowners with current FHA Mortgages
Owners with FHA mortgages have a great opportunity to refinance right now. In our article a couple weeks ago we talked about the best streamline refinance programs available right now and the FHA Streamline Refinance made the cut. This refinance lives up to its name by waiving a lot of the verifications and documentations necessary with typical refinances. Some homeowners are also eligible for another bonus and that is Canceling FHA MIP via a refinance. Look into it, folks! There's no reason to continue paying more than you should for your home.
Homeowners with current VA Mortgages
Last but not least we have the homeowners with VA Mortgage loans. This type of mortgage refinance is similar to the FHA with the more lenient refinance rules and little verification red tape to jump through. On top of this, VA mortgage refinances do not require mortgage insurance or appraisals and you could even be underwater with your existing home loan and STILL be eligible to refinance right now. Additionally, because the interest rates for VA loans are hovering in the 3% ranges, this has made meeting the VA's required “Net Tangible Benefit” stipulation completely possible.
Contact us here at Lendem Financial today and let's discuss your options for a refinance.
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