Refinancing: Whom Can Your Trust?

That was the headline in The Wall Street Journal and I have included the link below.  There has never been a more important time to deal with a mortgage expert.  As I have said a hundred times lately, there is much more to a mortgage than an interest rate. 

You truly get what you pay for in life and I think many people are slowly starting to realize that.  If someone offers an interest rate much lower than everyone else it either doesn’t exist or you are going to receive very poor service and advice. 

I am not kidding when I say that I get numerous calls a week about deals that did not close and they found out at the last minute.  The other day a client called and said he needed to refinance his property to get his name off of the loan so he can buy another home.  I mentioned doing an assumption and he said he is working on that right now.  However, prior to that he tried refinancing his FHA mortgage but the appraisal came in too low.  I asked why he didn’t do an FHA Streamline Refinance Without an appraisal and he said his mortgage person never mentioned that.  Now, that low appraisal is tied to the property and his only hope is that his current mortgage servicer will do the assumption. 

There is no set formula for determining when it benefits you to refinance.  It all depends on how long you plan on keeping the loan, how far in you are with your current loan, the costs and savings involved, etc.  This is especially true with FHA refinances since they can be more costly with the Upfront Mortgage Insurance Premium.  You need a Mortgage Professional to help guide you.