Refinancing Your Portland Mortgage
Portland Home Mortgage Guide was put together over time to share valuable insights with you & to aide you no matter whether you are considering your first home purchase, or if you’re already a homeowner and are simply looking for assistance with your Portland home mortgage refinance. Either way, we really hope you will find the information here helpful in your efforts.
Mortgage rates are lower than 5% – but how can you get the best refinancing deal?
Everyone wants to know how to get these super low interest rates. The thing is, most people aren’t even able to get through to their existing lender when they try to call. They’re pretty frustrated.
An expert in the mortgage market who works for Fannie Mae believes that it might take a full 3 months to get the industry back to firing on all cylinders. His expectations are to see interest rates for home mortgages to stay in the neighborhood of 4.75% to 5.25% for the rest of the year.The takeaway here: Be patient – there will be lines.
Some points not to forget
1. Recognize what a unique opportunity this is
Look – there is opportunity here. Thirty-year fixed mortgages are below 5%.The ‘normal’ rate, in historical terms, is in the neighborhood of 8%.. And that is significant.
Let’s take a closer look for a moment. First, let’s take a 30 year fixed mtg at 4.6%. If you took out a 30-year fixed loan of $170, 300 (this is about average for a home loan across the US) if your interest rate was 5%, you would be paying roughly $915.At an 8% rate, you would be paying $1,250. What’s the difference? $335 per month, which adds up to around $4,000 over a year’s time.
2. Be cautious
Be prepared for the fact that it’s going to take longer to get through the refinance process these days. That’s just something you’re going to need to accept.Something else to be prepared for is the fact that Fannie Mae and Freddi Mac have apparently raised their fees.
You might find yourself paying additional 1-2% of the total loan amount, and sometimes more than that; and this is added to the closing costs that are always involved anyway.
3. Get the best rates
Having enough equity is one of the biggest obstacles. Today you’ll need 20% or more in equity to qualify for the best rates.
Make sure you keep your credit score as high as possible. Take a look at your credit report first, to make sure there aren’t any errors. You can get a free copy at annualcreditreport.com.
Talk to multiple lenders to be sure you’re getting the very best rate you can. Put all your paper work in order beforehand. The following is a basic list of the documents you’ll need:
A complete application, two years of tax returns, pay stubs for the past month, 3 months of bank statements (checking, savings, mutual funds), the most current mortgage statement you have and finally, a copy of your deed.
If you consider doing the things outlined above as you prepare for your Portland home mortgage refinance or purchase loan, you will likely be in far better shape to get what you’re looking for than the average mortgage applicant.