Houston Refinance Mortgage Guide
Mortgage applications in the United States surged by a record tbe week before last, as lending rates dropped signicantly after the Federal Reserve pledged to buy mortgage-backed debt.
According to Bloomberg, “The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan jumped 112 percent to 857.7, the highest level since March, from 404.4 the prior week. The group’s refinance index skyrocketed 203 percent, while the purchase index rose 38 percent.”
The Fed’s announcement sent the rate on 30-year fixed mortgages down to a three-year low, sparking demand to refinance adjustable-rate loans.
Following are some tips from top-rated Houston refinance Mortgage providers about what to consider when looking if a refinancing makes sense for you.
According to Craig Gentry of Wells Fargo, here’s where refinancing your home may work for you:
- If a borrower has multiple loans where the interest rate on the 2nd lien is higher then the first, it is sometimes an advantage to combine the loans into one loan in a refinance.
- If there is sufficient equity in the home, closing costs and property taxes can be included in the new loan on a refinance.
- You can only refinance a Texas Home Equity loan once every 12 months.
- A good rule of thumb to consider is if current rates are more then 1/2% below current mortgage note rate, it is at least worth investigating the advantages.
- Most good mortgage providers can tell you very quickly if it will make sense for you to refinance at the current time.
- Many homeowners have used the current market environment to refinance out of an adjustable rate mortgage into a 30-year fixed mortgage, providing additional comfort.
Please don’t hestiate to contact me for a shortlist of quality, local Houston mortgage providers to discuss your situation.