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

• Points

• Escrow fees

• Underwriting fees

• Fees for the lender's attorney

• Any other service charges