Factors to Consider Before You Refinance Your Home

It’s no secret that the best time to finance a home is when mortgage interest rates are low. You could save thousands of dollars over the lifetime of your mortgage if you finance at the right time. With interest rates still being low, some wonder why more people aren’t refinancing their homes, especially if doing so would save them $100 or more a month on their mortgage payments.

Although low interest rates are a primary reason to consider refinancing a home, it’s not the only reason. Other reasons to consider refinancing include:

  • Ready to adjust length of the loan – Refinancing your home could allow you to extend the number of years that you have to pay for your house, potentially lowering your monthly installments. Just be careful that you don’t end up paying higher interest rates in the long term. Of course,you could also shorten the length of your loan. Generally, this option will find you paying less interest over the lifetime of your loan.
  • Moving to a fixed rate mortgage – Adjustable rate mortgages may start out low, but they don’t always remain low. Even with a fixed rate mortgage, you could spend more on your house each month due to an increase in home owner association fees or property taxes.
  • Improved credit scores – Stronger credit scores could help you to get a better adjustable rate mortgage.

If you’ve had your mortgage for several years, you may have paid on a good deal of the principal. Refinancing and starting with a new loan could backfire, causing you to pay more interest. If you have a lot of equity in your home but you’re struggling to stay current on your monthly mortgage payments, consider renting out a room at your house.

You could also work a part-time job, even if you work a remote job from home, until you become current in your payments. A few months of work change could save you money and headaches down the road if you only need $200 or less each month to make your mortgage. Other alternatives would be to become more energy efficient and to create and stick to a budget. Think short and long term gains.

Depending on your existing mortgage, you may or may not be charged a fee to refinance your home. Some mortgages charge a prepayment fee to refinance. Simply because you’re paying the loan off early, you could be assessed the fee. Definitely check with your lender to see if such a clause is in your mortgage contract.

Take your time shopping around for a better mortgage. Regardless of the lender that you refinance your home through, you may pay refinancing fees. Some lenders may also require you to pay for another home inspection, application fee,origination fee and closing costs. Factor in all charges and fees that you will incur if you refinance your home before you sign on the dotted line.

If your home no longer meets your family’s needs, moving to a new house might be a better option than refinancing. Another time when you might not want to refinance your home is if your kids are getting ready to start college and you’ll be taking on student loans.

Mid-Rise – 194 Saint Paul St Unit 2 Brookline, MA 02446 now has a new price of $429,900!








194 Saint Paul St,



Brookline, MA 02446

Coolidge Corner

Condo

$429,900
Price

4
Rooms

1
Beds

1
Baths

Great Location, near Boston University, the Green Line, Longwood Medical area, Brookline Village. Affordable condo in the Coolidge Corner area of Brookline. Unit comes with 1 off street covered parking space. Unit could use some updating but at this price it's well worth doing. This would be perfect for someone who lives in the suburbs but wants to stay "in the city" during the week. This is an estate sale, elderly owner cannot make any reliable statements about the property, buyer to do their own due diligence and not rely on any statements by the owner.

Open House

No scheduled Open Houses

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194 Saint Paul St Unit 2, Brookline, MA 02446 has an Open House on Sunday, May 21, 2017 at 1:00 PM








194 Saint Paul St,



Brookline, MA 02446

Coolidge Corner

Condo

$450,000
Price

4
Rooms

1
Beds

1
Baths

Great Location, near Boston University, the Green Line, Longwood Medical area, Brookline Village. Affordable condo in the Coolidge Corner area of Brookline. Unit comes with 1 off street covered parking space. Unit could use some updating but at this price it's well worth doing. This would be perfect for someone who lives in the suburbs but wants to stay "in the city" during the week. This is an estate sale, elderly owner cannot make any reliable statements about the property, buyer to do their own due diligence and not rely on any statements by the owner.

Open House

Sunday

May 21
at
1:00 PM to 3:00 PM

Cannot make the Open Houses?

Location: 194 Saint Paul St, Brookline, MA 02446    Get Directions

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How to Stop a House Foreclosure

It takes as little as two to three missed mortgage payments to receive a foreclosure notice from your lender. Receiving a foreclosure letter from your bank can be as unnerving as receiving a letter from the IRS. What you may not know is that there are generally two stages to the foreclosure process.

Take action on a house foreclosure notice

At first, you will likely receive a notice or letter that you have defaulted on your loan. The type of letter that you receive depends on the housing laws in the state that the house is located in. Additionally, depending on the details in your mortgage, you may need to go to court to start and finalize a foreclosure.

Details included on a loan default notice may include your  full name, street address and the lender’s name and address. The reason why you are receiving the notice is also included. There’s a likelihood that you will also receive a date by which, if you get caught up in your mortgage payments, you can remain in your house.

Which raises the first step that you could take to keep your house out of foreclosure. As soon as you receive a notice of mortgage default, contact your mortgage lender. Work out a date by which you can get caught up in your loan payments. Go with a date that you know you can meet. If you get caught up in mortgage payments by an agreed date, you can avoid receiving a foreclosure notice of sale.

More ways to keep your house out of foreclosure

Additional actions that you could take to keep your house out of foreclosure will impact your financial health over several years. However, there is another step that could keep you from dealing with a damaged credit rating. But, let’s start with the early steps.

Schedule a meeting with your bank and discuss a loan modification. Again, make sure that you can meet the adjusted monthly mortgage payments. It does you no good to work out a temporary plan that you will only default on within a few months.

Take out aloan with another lender to cover the cost of the late payments. Only take out enough to cover the amount of mortgage that you are behind on. This should bean absolute last option, as it will cause you to take on more debt.

Another late option is to file bankruptcy. You will likely need to come up with bankruptcy filing fee. It is possible to find attorneys who will cover their fees until after the bankruptcy goes through. Just know that a bankruptcy will affect your credit for seven years.

You could also ask relatives to give you enough money to get caught up in your mortgage payments. Do this early, long before the bank moves your foreclosure to the sale stage. To avoid having your house go through foreclosure, take on a second job. For example, you could take on contractor work on weekends or in the evenings at home.

Depending on the amount of equity that you have in your home, you could sell items at your house to raise enough to cover late mortgage payments. As worried as you might become after you receive a foreclosure notice, you do have options. Start brainstorming for ways that you could rectify the situation. Above all, take action and reach out to your lender.