You may have heard stories about how refinancing has saved homeowners thousands of dollars and wondered why people are still hesitant about opting for it. The main reason behind it is the myths that surround refinancing mortgages. Refinancing your mortgage changes your loan terms which may result in lower monthly payments.
There are various benefits of refinancing your mortgage, one of which is that it can help you pay off your loan more quickly and lower your burden. If you are considering refinancing your mortgage loan, it is crucial that you steer clear of some myths. For a consultation, speak to a refinance second mortgage with North East expert.
Mortgage refinancing myths busted
Myth #1: You missed the chance.
The rising interest rates may make you think that you have missed the chance to refinance. However, that is merely the truth. Once you qualify for the check that refinancing the mortgage loan would lower your monthly payments, you still have a good chance.
Myth #2: If you were denied once, it means you will never be qualified.
Just because you were denied refinancing once, that does not mean you have lost your chances. Some applicants are denied due to their own mistakes or maybe because they did not handle the application well. It could also be that you were unable to meet the equity and credit score requirements. However, times are not always the same.
If you have been taking care of your credit score, you could qualify this time. If your situation has become better in any of those two categories, there is no reason you should not apply.
Myth #3: Refinancing is not worth the hassle.
The process of refinancing is not easy, with tons of paperwork and various kinds of fees involved. The process can be daunting, but that does not mean it is not worth the hassle. Most people who spread this myth usually do not understand the benefits. It is better to take care of the situation than keep payment of the current amount.
Do the math and figure out the money you are going to be saving with refinancing. If you think the amount is worth the hassle, you should apply.
Myth #4: Refinances are costly.
While there are costs during the refinancing process, the money you will save afterward should cover the initial costs. Consult with an expert in the North East to determine the necessary expenses and how much you may save if you qualify for refinancing.