Tag Archives: refinancing
Are you putting off mortgage refinancing?

I am still amazed when I get a call from a client and find out they have interest rates near or exceeding 5% or higher.  When we finish looking at their particular financial situation and see how they can save by refinancing the comments are often the same, “I wish I had done this earlier.”

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Here’s the 10 most usual comments I hear from clients when asked why they have not refinanced?
1.  I’m just too busy!
2.  Not sure how long I will stay in the house.
3.  I thought my other borrower would do it
4.  My neighbor said our house was valued too low
5.  I didn’t think I would qualify?
6.  Refinancing is a real pain.
7.  Mortgage companies have tightened up lending.
8. Not sure if I would save any money.
9. My accountant or tax advisor told me to do it last year.
10.  I thought mortgage rates were going lower?

OK, you’ve got the idea.  No one knows you’re situation when it comes to mortgage financing and whether or not it makes sense, other than you.  However, you never know if it makes sense or not to refinance, unless you know all the answers.

Making a note of #10.  Considering where mortgage rates are now, refinancing or buying a house today is the best ever. When you consider all permaters, such as inflation and taxes, leveraging your asset at the lowerst possible rate has never been better and has never made more sense.

I have a suggestion.  Give us a call and let’s see if refinancing makes sense for you.  If it does, then you still have the opportunity to shop around or let us help you, either way, we have performed a vital service to you and your family!

Give us a call, we’re here to help!

6 Questions Delawareans Should Ask Before Refinancing!

de.aware, refinance, credit score, interest ratesWondering if refinancing your mortgage is something you should look into? That answer depends on what you want to get out of it.

Refinancing, or paying off your existing mortgage with a new one, could be worth it when it saves you money. And with interest rates near historic lows according to the Mortgage Bankers Association – it very well could help you save.

However, just because rates are low, doesn’t mean that refinancing is the right option for everyone.

In fact, refinancing costs and rates vary on a case-by-case basis.

Below is a list of questions you can ask yourself to help you make a decision if refinancing is right for you.

Question #1 – Will I get a lower interest rate if I refinance?

It only makes sense to refinance if the new mortgage is going to be better for you financially, right? Then, the first place to look is the interest rate, which is a good indicator of how much you could be saving.

Talk to one of our loan specialists here at Delaware Financial Capital Corp to find out if – and by how much – you might be able to lower your interest rate by refinancing. But keep in mind, the interest rate is just one piece of the puzzle. Sometimes a low interest rate might come with high fees.

Question #2 – How good is my credit score?

Why should you care about your credit score when it comes to refinancing your mortgage?

Here’s one reason: Lenders may use it to decide whether or not you are a good risk for a home mortgage.

So what’s a good score? Well, FICO credit scores – can range from 300 to 850.

And the higher the score, the better.

If your credit score isn’t where is should be, don’t worry. There are a few things you can do to help improve your score, like paying your bills on time and paying down your credit card balances.

Question #3 – Can I afford the refinancing costs?

If you’re currently paying 6% interest on your mortgage right now, it might feel like a no-brainer to try and refinance to a 3.5 % interest loan. But before you sign off on that new loan, you need to know how much refinancing will cost you.

Question #4 – How long do I plan on staying in this home?

This is one of the more important questions to ask yourself, because if you are planning to move within one or two years, refinancing might not be worthwhile for you.

Question #5- How stable is my employment?

One of the things lenders look at when determining whether or not they’ll approve you for a loan is the stability of your employment.

Does that mean you won’t qualify for a loan if you’ve had more than 1 job? Not necessarily, but you do need continuous employment. Lenders want to make sure you’ll have a job two months from now.

Question #6 – Can you put those big purchases on hold for a while?

If you’re considering refinancing, ask yourself if you can put other big purchases on hold for a while. If you can’t refinancing may not be in your best interest.

Don’t take out new debt at the same time you’re trying to get a refinance. Some borrowers think that the lender will see I just got a new car, so of course they’ll give me money – but in truth the lender worries if you have a new car (and new car payments) how will you pay the mortgage?

And while it’s okay to have some debt – like student loans or car payments – it’s important to make sure that you can manage all of your payments comfortably, including refinancing costs and monthly payments.

Finally, if you’ve already applied for a refinance, don’t take on new debt until the deal has closed.

How do you know whether or not you qualify?  Simply, you won’t know unless you ask.  If this whole topic seems a little confusing, please do not hesitate to give us a call at 302-266-6500 to see if you may qualify for a lower rate and a refinance.

 

 

Questions? Contact our Mortgage Speciali

When does refinancing make sense?

imagesCAZWLKRTWhen does does refinancing your mortgage make sense? This option could make sense for several different reasons. Each homeowner is different. Sometimes it’s getting a lower interest rate and other times it’s so you can cash out the equity in your home to pay off other bills. You may even consider refinancing your mortgage to get into a shorter term to pay it off quicker. Here’s a look at a 3 reasons homeowners may consider refinancing:

  1. Lowering the current interest rate. If you bought your home more than a couple years ago, you’re probably paying a higher interest rate than homebuyers today. Rates are at record lows right now and if you are paying a higher rate it could make a significant difference.
  2. Cash out equity. Whether it’s to pay off credit cards, buy a new car or do some home improvements, cashing out your equity could help financially in these areas.
  3. Shorten the mortgage loan term. A 30-year mortgage is the most common term for home buyers. But going with a 15-year mortgage could actually lower your interest rate and pay off your loan in less time. Many times homeowners get to a point in their jobs and finances where they can afford the higher monthly payment that comes with a shorter-term mortgage.

Regardless of the reason to refinance your mortgage, we are here to help you and answer your questions.  Our mortgage consultants at Delaware Financial Captial Corp. will help guide you through the refinancing process. 

We’re helping Delawareans to refinance their mortgages everyday!

So let us help you refinance your mortgage  Give us a call at 302-266-9500 or email at support@delawarefinancial.com or simply click the button below!

 

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