| 3 Mortgage Mistakes That Could Derail Your St Louis Refinance Loan |
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When it comes to doing a St. Louis refinancing home loan, consumers can make their mortgage process a bit easier by avoiding these 3 mistakes that borrowers frequently make.
When it comes to doing a St. Louis refinancing home loan, consumers can make their mortgage process a bit easier by avoiding these 3 mistakes that borrowers frequently make. 1. The Ever Loving Topic of Interest Rates Since interest rates are at their lowest in over a decade, you probably have discussed the possibility of approaching a lender or mortgage broker about a new refinance loan. This may put you in a better financial position from a monthly payment point of view as well as enjoying the obvious savings over the life of the loan. The first step to consider before you apply for a new loan is being certain of all aspects of said loan. You need to fully understand all fees involved that are associated with your new lower rate. And don't think you deserve a free loan. Most clients have to pay points so be expecting this when closing. Keep in mind however, points or fees are not always a bad thing especially when you receive a lower interest rate in return. The cash savings can be very attractive when your monthly mortgage payment has been lowered. And don't forget the long term savings that are involved over the life-time of this new loan. 2. Always Review the Good Faith Estimate The second mistake most clients make when doing a refinance loan is not reading the Good Faith Estimate (GFE) thoroughly. This important document itemizes the overall cost of your new loan. These financial numbers include the A.P.R., the interest rate and fees involved. One thing I inform all potential refinancing clients is that the Good Faith Estimate is exactly what it is called, an "estimate." Figures may be a little different due to an unexpected lower credit score, appraisal or maybe your debt-to-income ratio is a lot higher once the lender sees all your debts from your credit report. When discouraging information appears unexpectedly and changes the GFE numbers, the worse thing you can do is blame the lender or mortgage broker. Let's face it, you are responsible for your bills and what is on your credit report. The point being made here is if the numbers on the GFE change drastically, that is the time to have a heart-to-heart talk with your loan officer. When it comes to St. Louis refinancing home loans, they should be drawn up to help you and your family accomplish your financial goals and not be an additional burden. 3. I'm Going to Wait for the Right Moment to Refinance It's human nature to watch interest rates on a daily basis especially when they are unusually low. The consumer may feel they will jump in at the right moment yielding them the lowest rate possible. As the old saying goes, never look a gift horse in the mouth. If the new rate is 1 or 2 points lower than your current one, this may be right time to refinance into a new St. Louis mortgage. Trying to think like a lender may hinder your taking needed action. By following through and using these proven lending tips when applying for your St. Louis mortgage refinancing loan, you will be closer to accomplishing your goals of saving money and/or paying off your high interest debts. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about a St. Louis refinancing home loan. Stop by Floyd J. Tapia's mortgage news blog where you can find out all about St. Louis mortgage tips and what they can do for you. |