When is the best time of the month to close?

closingYou may have heard that it is best to close on your home loan at the end of the month. While closing at the end of the month does have some advantages, it really depends on your situation. Read on to learn if closing at the end of the month, or possibly at the beginning of the month, is a better option for you.

A major deciding factor for if you should close at the end of the month depends on if you are purchasing a home or refinancing a home.

If you’re purchasing a home…
home buyingIf you’re purchasing a home, you will pay interest for every day that you are in the loan. It’s true that if you close at the end of the month, you will pay less days of interest on the day of your closing but the first loan payment will be due in a little over 30 days. However, closing at the beginning of the month also has advantages. Although you will be paying more days of interest on the day of closing, you will be skipping closer to two monthly payments instead of one. If you have a good realtor who negotiated for the seller to cover some or all of your closing costs, the seller may pay the interest due at the closing.

If you’re refinancing a home…
When you refinance a home, you will be paying the old interest rate for the first part of the month, then the new interest rate for the rest of the month after closing. So if you are refinancing into a loan with a lower interest rate, you will save on interest by closing at the beginning of the month.

Things to consider…
costsKeep in mind that you may not always be able to control the time of the month at which you close. Consider that the seller may also want some say about when closing will take place. It’s important to stay flexible, especially if you are purchasing a foreclosure or short-sale. Also, be sure to take into account holidays, as they could possibly delay closing.

If you have any further questions about what the best time of the month to close is, or other home financing topics, please do not hesitate to contact me.

Refinancing to Buy a Second Home

Interested in refinancing to buy a second home? Contact me today!

second_homeIf you’re ready to purchase a second home as an investment property, a vacation get away, or a place to retire in the future, it’s important to consider your options for financing this second home. As an experienced mortgage lender, I have worked with many clients buying their second home and I am here to help you with any of your mortgage and home financing needs. Here’s a few considerations when financing the purchase of a second home:

Avoid purchasing with money from your IRA or stocks

While many people may believe that the best options for financing a second home purchase is through taking money out of their IRA, taking a loan from their 401(k), or selling stocks or bonds, this route is usually risky and generally a bad idea.

Consider a cash-out refinance instead

cash-out-refinance-280x3002While you’ll most likely need to take out a mortgage on the second home, putting in a larger down payment has it’s benefits. In order to secure this larger down payment, many use the equity they have built up in their primary home through a cash-out refinance. According to CNN Money, “Home equity is the difference between what a person owes on their mortgage and their home’s market value. For example, someone who owes $200,000 on a home that is worth $300,000 has $100,000 in home equity. [. . .] That value can be monetized through a cash-out refinance. (That’s when you take out a new loan with a higher balance that pays off your existing mortgage and then you can use the remaining balance toward other things, like a second home.)” Using a cash-out refinance option could make the second home mortgage process easier on you in the long run.

Other considerations

  • Interest rates may be higher for a second home purchase
  • Make sure you have the monthly income to cover both mortgage payments on your primary home and second home
  • Use my useful mortgage calculators to evaluate expenses, interest, and other possible savings.

header-homeContact me for your refinancing and second home buying needs!

If you’re ready to refinance to buy a second home, do not hesitate to contact me today for your mortgage needs!

When is the Best Time to Refinance a Mortgage?

mortgage-refinance-costAs a mortgage lender, I frequently assist clients who are interested in refinancing, but need to gather more information about the process before we begin. The most common question I hear is, “When is the best time to refinance my mortgage?” so, here’s some answers from an article published by Bankrate, along with a few of the key benefits of refinancing.

Determine Your Goal

tfile_pic_big-4In order to decide if now is the best time to refinance your mortgage, stop to think about what you want to accomplish with the refinance. Keep in mind that refinancing a mortgage will in no way lower the debt or pay it off, it just restructures it with a lower interest rate and a different loan term. It’s also important to note that ideally, homeowners should only refinance once on their current mortgage.

So, what’s your goal? According to the Bankrate article, the two most common goals of refinancing are reducing interest expense and debt consolidation. Using two helpful mortgage calculators on my website, homeowners can determine how much they’ll save each month and how much interest they can save with a refinance.

Consider the Timing

image-1As with many decisions, timing is everything. In order to get the most out of refinancing, homeowners should be planning on staying in the house for a while. According to the Bankrate article, “When weighing whether to refinance, homeowners are typically urged to consider how many months of lower payments it will take to recoup the closing costs of the new mortgage.”

When considering a refinance of your mortgage, it is also important to make sure that you do so with a good credit history and you must be current on your mortgage payments. Assuming that you want to achieve a lower interest rate on your loan through refinancing, it’s also important to refinance when rates are lower than your current rate.

Contact me today for more information!

If you are ready to refinance, do not hesitate to contact me today to learn more about what I can do for you!

How much money could you save if you refinance?

Bernanke-House-Policy_AP_MI-resize-380x300Ben Bernanke seems to hold the market (and your mortgage rate) around his little finger these days. The free market plays far less of a role in stock prices as we near what we’re told will be the end of QE3, so when “The Bernanke” speaks—we’re compelled to listen. Because his statements are less clear every time he hits the podium, I fear that rates will go up in a big way sooner than later and my clients will miss this historic opportunity to refinance.
Some crazy scenarios are taking place every day in my industry—one couple refinanced to a 15-year from 30-year and saved money on their monthly payment; another family was shocked to find out that they could save $500 a month on their mortgage because they bought their home when interest rates were at all-time highs. While these results may be extreme, most people don’t even think they qualify before they call us.

Our advice?
Do your homework. Many factors go into refinancing and most people want to know what/if they can save money prior to contacting a mortgage professional. For that reason, we have a Mortgage Refinance Break-even calculator right on our website. Check out our calculator today to see if refinancing will save you money!

Are you in need of fast answers and reliable service related to a mortgage? Call us today: 913.317.5626.

How much money could you save if you refinance?

Ben Bernanke seems to hold the market (and your mortgage rate) around his little finger these days.  The free market plays far less of a role in stock prices as we near what we’re told will be the end of QE3, so when “The Bernanke” speaks—we’re compelled to listen.  Because his statements are less clear every time he hits the podium, I fear that rates will go up in a big way sooner than later and my clients will miss this historic opportunity to refinance.

Some crazy scenarios are taking place every day in my industry—one couple refinanced to a 15-year from 30-year and saved money on their monthly payment; another family was shocked to find out that they could save $500 a month on their mortgage because they bought their home when interest rates were at all-time highs. While these results may be extreme, most people don’t even think they qualify before they call us.

Our advice?

Do your homework.  Many factors go into refinancing and most people want to know what/if they can save money prior to contacting a mortgage professional. For that reason, we have a Mortgage Refinance Break-even calculator right on our website.  Check out our calculator today to see if refinancing will save you money!

Will you save some GREEN if you refinance?

A lot of media attention has been devoted of late to the benefits of refinancing your home. However, refinancing makes sense if it is in your financial best interest. Check out our calculator to see and then call us to get pre-qualified: http://www.houseloan.com/java/MortgageRefinance.html

Are you in need of fast answers and reliable service related to a mortgage? Call us today: 913.317.5626.