If you are fortunate and are not in jeopardy on your mortgage at this time, you may consider refinancing to obtain a lower interest rate. Provide you have equity and your home appraises to a value acceptable to your new Lender you should be OK....and if you are even more fortunate and have some cash to paydown your loan, the savings could really increase. Unlike the borrowers who refinanced and took 'cash out' of their property, you would be doing a 'cash in' refinance and could save thousand of dollars over the term of your loan; however there is a second option you might consider and that is a "recast". You must check with your lender to see if the terms of your promissory note allow it and their current policies are to allow what is actually another way to modify your loan. If you can, you must request a recast and be able to paydown some principal balance on your loan(Each Lender will have different parameters so make the call). A fee will be required and the fee for a request is generally nominal by comparison; however, the good news is that you do not have to pay all the points, fees and closing costs associated with a refinance.
Before you do this, I strongly advise that you consult your tax preparer and/or financial consultant to discuss the tremendous savings of interest over the loan term -vs- write-offs -vs- investment possibilities with the cash you might use for 'cash in' or "recasting".
Good luck to you fortunate ones and as always...Keep the faith!
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