"When interest rates fall, you may want to refinance your mortgage. But can you explain what you hope to get out of refinancing? "If you want to refinance, I say, 'Well, what do you want to do? What do you hope to accomplish by refinancing?'" says Carolyn Morganbesser, assistant vice president of mortgage originations for Affinity Federal Credit Union in New Jersey."
"To get the refinance you want, you need to explain your goal in words that the lender understands. This is a guide to what to say, complete with sample sentences that you can use as you kick off a refinancing conversation with a loan officer or mortgage broker."
"If and when you refinance, you'll have company. Let's say 30-year mortgage rates lingeraround 6.125% for a while. In that case, almost 5 million homeowners would be in a position to cut their rate by at least three-quarters of a percentage point, according to Intercontinental Exchange, a mortgage data analytics company."
""If I could design a refinance that is outstanding for your situation, what are the top three things you'd like to see come out of it?" Maybe it's cash flow, or maybe it's money to pay off debts with higher interest rates."
When interest rates decline, homeowners commonly consider refinancing to achieve specific financial objectives. Clearly stating the goal to the lender helps match loan options to needs. Typical objectives include lowering the interest rate, reducing monthly payments, shortening the loan term, or accessing home equity for cash. Lenders and loan officers will ask targeted questions and may challenge assumptions to identify the best solution. Candid communication with a loan officer enables prioritization of outcomes such as improved cash flow or debt repayment. Refinancing can benefit many homeowners but requires weighing costs and trade-offs carefully.
Read at SFGATE
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