Find out why thousands of homeowners return to Home Loan Wholesale for getting the most current interest rates for residential home loans
Question: How can I find the best rate? Answer: Don't just shop around. Discuss loan options with several credible lenders and mortgage brokers. Compare both interest rates, annual percentage rates (APRs) and terms.
Question: Should I refinance if I have to pay closing costs?
Answer: Calculate how long it will take you to break even. In most cases there are 3rd party fees associated with a mortgage refinance loan. The best way to figure out if the closing costs make it still worth it to refinancing your mortgage, is to calculate how long it will take you to break even. For example, if it costs you $1,500 in closing costs, and mortgage refinancing lowers your monthly mortgage payment by $150, it will take you 10 months to recover the cost of refinancing. If you are planning to move in the next few months, then it may not make sense to refinance.
Question: What is PMI? Will I need to pay it?
Answer: If you have less than 20% equity in your home, you may be required to pay mortgage insurance (PMI). Private mortgage insurance protects the lender, in case they have to foreclose on your loan, and can be paid monthly, or in one lump sum. The cost of mortgage insurance is something to consider if you are thinking about tapping into your homes' equity and increasing the amount of your new loan.
Question: Should I get a fixed or adjustable rate mortgage?
Answer: Before you refinance, you should consider both options depending on the market conditions. A fixed rate mortgage remains the same for the entire length of the loan, while the mortgage rate of an adjustable rate mortgage can vary with the market over time. Although a variable rate mortgage might offer lower payments initially, if the interest rates rise, your payment will, too. You should carefully consider your situation before financing a new home.
Question: What is a prepayment penalty?
Answer: Some mortgage lenders include a prepayment penalty fee for paying off your mortgage balance early? Make sure you consider this issue directly with your loan officer, as some lenders will charge a substantial fee for early loan payoff.
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