Boise Idaho Real Estate Tips
Interested in Buying or Selling in the Boise Area? Find Real Estate Tips Here.Archive for mortgage advice
Can I Always Refinance My Mortgage
Many people take risk when getting a home loan thinking that they can refinance in the future when the fact of the matter is they may not be able to refinance. If some of the following were to occur your plan to refinance may not be possible.
- If you took a chance on an adjustable rate mortgage and the interest rate rises it may be very costly to refinance.
- If your home stops appreciating in value, your original home loan amount may exceed the value of the home.
- If you have problems with your credit you may damage your credit history to the point where you no longer qualify for the good interest rates.
Use caution when buying any mortgage product and don’t always think the future predictions the lender makes is going to be reality. Telling you that you can refinance at a later date is a prediction, many things could happen that could get in the way. Take a walk through your neighborhood and just see the foreclosure notices on the doors.
Questions to Ask Lenders
What you should ask a lender when looking for a home loan:
- Which of your products offer the lowest interest rate?
- Will my interest rate be variable or fixed?
- If the interest rate can change, when will it change and what is the high and low?
- If the lender is offering a “teaser” introductory rate, ask when the rate expires and how will the new rate change the monthly payment?
- Would I qualify for a better interest rate if I went for a standard full-documentation loan rather than a low-doc, or no-doc loan?
