When Should I Refinance?

I'm pretty sure rates will improve. Should I wait to refinance?
No matter how low interest rates get, some people expect that they will improve, just a little more. Unfortunately, they usually wait and miss the opportunity for a low rate, while interest rates some how get worse. Interest rates go up much quicker than they come down. If you are considering a refinance, please feel free to contact our office to discuss your many options on how to save more money.

I want to convert my adjustable-rate mortgage to a fixed-rate mortgage?
Today's interest rates are extremely low, and this may be the right time to convert your old ARM (adjustable rate mortgage) into a low fixed rate mortgage. Ask about our lower term fixed rate mortgages (25, 20, 15, and 10 years), to really save money (long term interest).

I found a lower rate quote. That will save me money right?
You must always research two aspects when comparing rates quoted from other mortgage companies. When you are shopping for that great rate, you must also be asking about the fees for those quoted rates. They may be charging these, usually unnecessary fees or more:

• Application Fees (refundable & non-refundable)
• Origination Fees (1% of the loan amount)
• Discount Points (1% of the loan amount)
• Broker Fees (otherwise known as junk fees)

Be careful when shopping to make sure you are comparing apples to apples. When in doubt, contact us, it's free; we will assist and confirm if you have found a great deal. Or call us at 1-321-987-9876 to discuss options you weren't informed about.

Is it a good idea to pay points to get a lower rate?
Remember, paying points is simply paying the interest due, in advance. Although the recovery period usually works out to be around 5 years, it is your decision. Please read our Paying Discount Points is Your Decision information or call us at 1-321-987-9876 for a free amortization schedule to compare the recovery periods.

What about my escrow accounts?
If you are currently escrowing your property taxes and homeowners insurances, you may be asked to start a new escrow account with your new lender. When refinancing, your old mortgage may have your money held in escrow and will be required to refund the balance to you, usually within 30 days of closing. Since most people like to "roll-in" all of the costs when refinancing, you may want to compare the real savings on simply paying them at closing and wait for the refund in the mail. This could save you more money over the life of the loan. Call us now at 1-321-987-9876 to discuss your options.

Is there really a No Closing Cost Loan?
Be wary of "No Closing Cost" loans. Think about it; that means the lenders or mortgage brokers are operating a business with "no income"? The least expensive option on refinancing should be calling your existing mortgage holder. They should be able to reduce the rate, provide unsurpassed closing costs and not require a new escrow account. Unfortunately, they are quoting prices higher than finding a new mortgage company. That's where we come in. Call us toll-free at 1-321-987-9876; after you have called them.

Contact BeechTree Mortgage and we will provide a very accurate Good Faith Estimate and answer any questions you have regarding this article. Call now at 1-321-987-9876

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