Real Estate

When you refinance a loan, you replace it with a new one. But when you refinance a mortgage, the goal is typically to save money by getting a lower interest rate and/or reducing monthly payments. The significant benefits of refinancing your mortgage include reducing your interest rate and monthly payment. While major drawbacks include the potential for increasing debt if you refinance into a larger loan amount and losing the equity in your home if you refinance into a longer-term.

Whether or not refinancing is right for you depends on many factors. These include how long you’ve owned your home, how much equity is in your home, what kind of interest rates are available, and what loan terms are available. If you’re not sure about how to go about this, mortgage experts at MLD Mortgage will be able to guide you through the details.

To refinance, the borrower must meet all requirements outlined by the lender, including being current on their existing loan(s) at the time of closing. Closing costs may apply, including origination charges, appraisal fees, documentation fees, settlement costs, etc.

We’ve outlined a detailed guide on things to know before you refinance your mortgage.

What Is a Mortgage Refinance?

A mortgage refinance is a way to replace your current mortgage loan with a new one. Unlike refinancing a car loan, you’re replacing your existing home loan with another one. The original mortgage goes away, and the new one pays off its balance when you do that.

The reason to do this is pretty simple: it allows you to change your existing mortgage. Maybe you want to lower your monthly payment by getting a lower interest rate or switching from an adjustable-rate loan (ARM) to a fixed-rate loan. Or perhaps you want more flexibility in how much of your income you can use for payments each month (a process called amortization) or how long it takes to pay off your home.

Do Your Research

Figure out what kind of refinancing is right for you. There are several different types of refinancing that you can use to get a lower rate or change your loan from an adjustable-rate to a fixed-rate mortgage. You can also choose between cash-out and rate/term refinance options:

• Cash-out refinance: You’ll receive your cash when you close on the new mortgage, which will replace the old one on your home. You’ll pay closing costs at that time as well. If you use the funds for anything other than home improvements, remember that interest on loans up to $750,000 may not be tax-deductible under recent tax laws (it was previously up to $1 million).
• Rate/term refinance: With this type of refinancing, you only repay the portion of the original loan that exceeds the value of your home when it comes time to sell—this means no cash is involved, and there are no closing costs unless you have an FHA or VA loan and wish to drop mortgage insurance coverage.

Learn about all fees and terms involved in refinancing, so there aren’t any surprises down the road. The annual percentage rate (APR) shows how much interest you pay per year in addition to any fees included in financing—and since different lenders may offer varying rates for similar loans based on their internal policies, make sure you compare offers before deciding which lender is right for you.

Refinance to the Lowest Rate and Fees You Can Find

One of the first things to look for when shopping for a refi is a low-interest rate. However, the APR is an even better measure of the value of a refinance because it includes both the interest rate and any fees that are charged as part of the loan. It’s essential to compare APRs across lenders not just to choose the lowest one but also to make sure that you understand what factors contribute to your APR.

For example, if one lender is offering you an APR with much lower upfront costs than another lender, this may signify that that lender has higher long-term costs built into their loan terms. When comparing lenders, be sure to take note of their rates and fees—it can help you negotiate better closing costs with your current lender later on.

High Credit Scores Are a Plus

People with high credit scores are eligible for lower interest rates. The reason is that they typically pay their bills on time, while those with low credit scores may do the opposite. When you refinance your mortgage, your new lender will want to see your score and know that you can handle the loan payment. If you have a good track record of paying off debts over time, it will be easy for them to contact you and take care of any questions or concerns before approving the loan.

A high credit score can help you qualify for more favorable terms on your loans, such as lower interest rates and payments which ultimately save money every month. Improving your credit score doesn’t happen overnight. But there are steps you can take now and over time to improve this number.

Consider Mortgage Insurance

Mortgage insurance—also known as mortgage payment protection insurance (MPPI)— protects you if you lose your job or cannot work due to an illness or accident. Should either of these happen, the insurer will cover your mortgage payments.

It’s essential to have this coverage because losing your job or being out of work for an extended period can make it difficult to pay your bills, especially when faced with an additional expense like having to refinance. If you’re forced into bankruptcy, not only will you damage your credit rating but also put yourself at risk of losing your home if the court rules that it be sold off to repay any debts.

Bottomline

The most common reason homeowners consider refinancing is typically a desire for lower monthly payments. Refinancing can be one way of getting there by lowering the interest rate on their current loans. However, if homeowners think their credit score has improved enough since getting their first mortgage, it might be worth applying for new financing altogether. It will help you get the best possible rate and/or terms available at that time.

 

Whether you’re on the lookout for luxury apartments downtown Austin or you just need a location that fits your lifestyle, downtown Austin has a lot of great reasons to entice you to make it your home.

Let’s look at a few of the reasons you may love living in Austin, Texas.

• Swimming to battle the heat. Many people know Texas for being hot and dry most of the year, but in Austin, you’ll find a lot of ways the citizens like to stay cool. Swimming is very popular, but you don’t have to splurge on your own pool with resources like Barton Springs nearby.
• Low cost of living. If you love big cities like San Francisco, you’ll enjoy the atmosphere of Austin. With a much lower price tag than some other cities, you’ll be able to afford luxury homes Austin that you couldn’t pay for in California or New York.
• Fantastic food. Not only is Austin a city of barbecue, where people line up for miles to taste their favorites, but many other meal options are available as well. Food trucks and street vendors are also usually available for your dining pleasure. The only downside is if you’re worried about your diet, because it won’t last in Austin!
• Casual climate. Comfort is critical in an area known for its heat, and Austin makes use of that to provide an environment of casual wear. Stay cool in your comfortable shorts and sandals without worrying about fashion faux pas; everyone else will be doing the same.
• Cultural charms. Texas has a reputation for being independent, assertive, and knowing what it wants. Austin retains some of the touches of its state while incorporating progressive values and a close community. The result can be an intriguing mix that many people enjoy.
• Artistic outlets. The city has a lot of opportunities for artists to promote their craft, like the annual South by Southwest (SXSW) Festival and live music stages at many restaurants and bars. Enjoy supporting local artists while experiencing their unique productions in Austin.
• Employment opportunities. The city of Austin is a central location for many reasons, including the University of Austin and a growing technology center. Many journalists have concluded that the city is one of the best places for people who want competitive wages and a low cost-of-living.

Sound like a place you want to be? Look into making downtown Austin your home today.

When it comes to home, bigger doesn’t always mean better. A lot of people think that living in a tiny house or small apartment is a major downside, but there are many advantages to living in a small space that many people don’t necessarily see. Fewer bedrooms in an apartment will generally translate to lower rent, and there are lifestyle benefits such as less space to clean and less furniture to buy.

The Savings

Obviously, the first argument for living in a small apartment is the budget, because the small area also means a low price! And that does a lot of good on the budget, especially in big cities. All those who choose to live in small spaces are therefore clearly making a strategic choice from the point of view of their savings.

Another advantage of living in a small apartment is that if you are creative and use your imagination, you often manage to find solutions to transform the smallest of spaces into a trendy and practical designer cocoon.

Household Cleaning

Whether you live in a small, medium, or a large apartment, one of the main advantages is that there is significantly less to clean! It is easier to thoroughly clean a small 1 bedroom apartment.

You don’t need as many household products to do so and so this is an additional saving. Since it is a smaller space, it won’t take you all day to clean.

Less Furniture

Having a small apartment means you have less stuff to move and so your place won’t be so cluttered. You get to put your creativity to test; changing the decor according to the seasons or redecorate your interior to follow the latest trends.

Changing cushions, rugs, and curtains can have a very noticeable impact in small spaces. You will be able to choose smaller pieces of furniture for your 1 bedroom apartment.

In Summary

Since you only have room for one comfortable armchair or chair for your living room. In the same way, you will think long and hard about the photos and other decorative elements you want to put in the room. Finally, it’s a good way to save money and avoid buying things that you might regret. It is time now to look for one of the 1 bedroom apartments Forest Hills offer to tenants who want a smaller space.