You’ve probably heard the news: Refinancing your mortgage can potentially save you thousands of dollars – especially if you refinance when rates are low. So, what’s holding you back? Misconceptions or fact versus fiction? We’re here to bust some of the most common refinancing myths.
- Myth No. 1: You’re too late – Even with the recent Fed rate hike, it’s still a favorable environment, and refinancing can be a great move.
- Myth No. 2: You won’t be able to qualify – Even if you’re struggling to get your credit back on track, you might qualify. The guidelines “are starting to loosen up again”.
- Myth No. 3: You can’t refinance if you currently have an ARM – The great news is that even if you’ve taken advantage of only the “good” part of the ARM, you can still refinance, assuming your credit and circumstances warrant it.
- Myth No. 4: Refinancing allows you to change only your rates and terms – Cash-out refinancing can fund your home improvement projects, too; but, be sure to consider all the pros and cons first.
- Myth No. 5: Refinances take too much time and effort – Ugh, just the thought of gathering all that paperwork can seem daunting. Don’t stop before you even get started! Check on your existing rate and compare. Through a“streamline refinance”, you can possible refinance your loan without an appraisal or even income verification. Your mortgage lender can help you find out if you’re eligible.