To refinance or not to refinance, is that the question?

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Mortgage and Lending with The mortgage help you want when you need it.

I have read so much lately about whether or not it is a good time to buy real estate. There are many factors in favor of doing so. Heck, it's a buyers market! I can't think of a better time to buy something than in a market that favors the buyer. I am surprised that my colleges have not given much thought to the other side of the mortgage business, that of refinancing.

Is now a good time to refinance your existing mortgage? I will go on record as saying now is a good a time as ever. There are some challenges to doing so but the principles of the buyers market spill over into the mortgage side of things.

There are a number of reasons you may need or want to refinance your mortgage and most of these have nothing to do with the market. You may be looking for a rate or term reduction to your existing mortgage. Either of these can potentially save you thousands if not hundreds of thousands of dollars over the term of your mortgage. You may need tofix in an adjustable rate or pay off a balloon payment. You may have taken out a mortgage that required you to pay a Mortgage Insurance Premium that you would like removed. You may need to refinance to take the mortgage out of someones name or you may want to refinance to add someone to the mortgage. These are all valid reasons to speak with a mortgage professional to determine what your options are.

Credit markets are tight right now. That means as a consumer you may find it harder to borrow unsecured money. You also may find that rates are going up on your revolving debt that you have already borrowed. You might want to consider taking some of the equity out of your home to pay for something you need such as education or a child's wedding or you may want to consider taking some of the equity out of your home to consolidate your other debt. These are all valid reasons to speak with a mortgage professional to determine what your options are.

When you seak professional advice, please be clear about what your objectives are. Remember, it is a buyers market and deals are available. Just remember my mother's advice, sometimes you get what you pay for. Never sacrifice trust and professionalism for a good deal.

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Rainer
127,987
Brian Belcher
RE/MAX Metro Realty - Charlotte, NC
Charlotte Realtor

Great post, thanks for the information.

Nov 03, 2008 02:35 PM #1
Rainer
80,777
Julie Staradumsky
Keller Williams Realty - Atlantic Shore - Northfield, NJ
CREN

Beth, great post, thanks for the inforamtion.

Nov 03, 2008 02:39 PM #2
Rainer
179,085
Erik Hitzelberger
RE/MAX Alliance - Louisville REALTOR-Luxury Homes - Louisville, KY
Louisville - Middletown Real Estate

Beth, cost of capital is such an overlooked aspect of personal finances.  If you have equity and can use it to get a 5-7% rate, it is crazy to keep paying 10-15% on credit cards, etc.   

Nov 03, 2008 02:52 PM #3
Rainer
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Scott Geary
Infinity Home Mortgage Company Inc - Allentown, PA
Your Pennsylvania Mortgage Source

Buyers market it is! Anyone worth their salt will tell you there is no time like today to buy / invest in real estate. On the refinance side, it's important for 'Joe Homeowner' to realize that equity can turn into cash at very good interest rates to address a wide variety of wants and needs. A mortgage professional can help point them in the right direction. Good info!

Nov 03, 2008 02:52 PM #4
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Bravo Miss Forbes!  I'm in agreement with you here.  While there are challenges, for those who have the need and who qualify... fence sitting isn't a wise move at this point.  Consumer confidence may be lacking, part of our job has now become to change the perception from myths to the facts of today's market.

Nov 03, 2008 03:01 PM #5
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Eric McGowan
Moody, AL

Beth, nice to see some of us "old timers" make that alzteimer's in the industry...lmao. Anyway, good post.

Nov 03, 2008 03:36 PM #6
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Beth Forbes
The mortgage help you want when you need it. - Center Valley, PA
Your 24/7 loan officer

Brian- Thanks so much for stopping by!

Julie- Thank you, I really appreciate it.

Erik- You got it. It amazes me that a lot pf people don't get that. I'm not in the business to "strip equity" but sometimes it just makes sense.

Scott- Joe the Homeowner. Hahahaha!

Sardiman- Today's market ain't so bad. It's time we helped people realize that!

Eric- I remember when 7.125 paying 2 points pn a 1 year FHA ARM was good. I'll bet you do too!

Nov 03, 2008 04:08 PM #7
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Beth Forbes

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