Financial experts recommend opting for a home mortgage plan even if you have the financial ability to make the entire cash payment. A mortgage plan provides additional protection to the real estate transaction since banks, title companies, and other authorities also become part of the process. Read more
Mortgage Rate Lock: When to Lock In a Rate
Mortgage Rate Lock: When to Lock In a Rate. Buying a home can be a stressful process, especially when it’s your first time. When you’re looking for a mortgage to help pay for your home, there are many things to consider. Mortgage rates are constantly shifting, and you need to keep an eye on them to ensure you get the best rate.
When you want to ensure that you’re getting the best rate, you have to lock in a rate before it’s too late. Here is what you should know about mortgage rate locks:
What’s A Mortgage Rate Lock?
A mortgage rate lock is when a lender offers to guarantee the interest rate on your home mortgage for a fixed period. While the lender may ask for a fee for doing so, it can vary depending on the lender you are working with.
The lock period generally starts from the time you begin the process for the loan all the way to the time you end up closing on the loan. Once your interest rate is fixed, it won’t be changed unless you end up changing crucial details on your application form.
When Is The Best Time to Lock In A Rate?
If you’ve already begun the process of looking around for good lenders in South Florida, you might already be at the stage to lock in a lender. When you’ve compared a few mortgage interest rates, contact the lender who offers you the best conditions and interest rates.
Once approved for a home loan, you can lock in a rate with your desired lender. While you can wait and see if the mortgage rate goes down, this can be both a waste of time and money. The rates fluctuate, and trying to predict them can take more effort than it’s worth without conclusive results.
Does It Cost To Get A Rate Lock?
Depending on your lender, you might be charged for a rate lock, or it can be free. Ensure that you ask beforehand so you are not blind-sighted by any unexpected fees. If you end up paying for a rate lock, it can be dependent on the amount of your loan and the prevailing interest rate.
You should be aware that rate locks can last up to 30 days in most cases; if you plan to take longer than that to complete your mortgage process, you should talk to your lender.
Consulting With An Expert
When you’re thinking about locking in a rate, you need to take guidance from a lender on the best way to do so. There are some risks associated with locking in a rate that you might not be aware of, and a reliable lender can help you through the process while making sure you’re aware.
Looking to Lock In Your mortgage rate lock? We’re Here to Help
If you’re shopping around for the best mortgage rates in South Florida, Pacific Lending Group can help. Our years of experience and excellence ensure that you never make a wrong decision regarding your home mortgage. Our mortgage professionals can guide you through the process, so you never have to second-guess yourself. Call us today at 954-227-4727 to schedule an appointment and get started with your home mortgage process.
When Do You Know It’s Right to Refinance Your Home?
Refinancing a home mortgage loan is an important decision that can save you thousands of dollars in interest and reduce your monthly expenses. However, it is a significant undertaking and should only be done when the benefits outweigh the costs.
You’ll pay off your current mortgage and take a new one with refinancing. This is not something you should do lightly because it can lead to missed payments, damaging your credit score.
Let’s find when is the right time to refinance the mortgage on your home:
When You Can Obtain a Lower Interest Rate
The amount of time it will take you to recoup the refinancing costs is heavily dependent on the interest rate, so when you see your rates are trending downward or about to fall, that can indicate that it’s time to refinance.
However, the process of refinancing can be a lengthy one, so you should only consider it when rates are going to go down.
When You Need to Reduce Monthly Payments
Your home is the biggest asset you own. It should come as no surprise that refinancing to a loan with a lower rate and/or better terms will reduce your monthly payment.
When refinancing, you can often get a longer-term or a lower rate, or both. If you are interested in lowering your monthly payment, refinancing can benefit you.
When You Want a Better Mortgage
While refinancing can help you reduce your monthly payment, it may not result in a better deal. If the rates and fees associated with your loan are too high for you, refinancing could provide a better option.
When you take out a refinance loan, the total cost will be higher than your current loan. However, the amount you spend on interest and fees should be smaller, resulting in a lower monthly payment and/or a better loan term.
When You Need to Consolidate Debt
Refinancing can be a great way to consolidate debt. You may want to refinance the mortgage if you have other debts, such as credit card debt or an auto loan.
By consolidating all of your debt into one loan, you will save some money since you won’t be paying any fees for multiple accounts. Low-interest rates can be challenging to find, but refinancing can make it happen.
If you use your home to consolidate your debt, you need to be sure that the loan will help you pay off your other debts faster.
If You Want to Take Out or Receive Cash
While refinancing your home is generally not used to take out cash, it can be something that you use to provide some quick cash for a purchase.
If you go through some of your equity when refinancing, you can get the money you need to cover an emergency or another financial need.
Call Pacific Lending Group for the Right Advice!
If you are ready to refinance your property, you must make the right decision. Pacific Lending Group holds extensive experience in refinancing loans and is happy to help you with your decisions.
Call our specialists at 954-227-4727 or visit us online to learn more.
Increase Your Chances to Get Approved by a Mortgage Company
Getting your mortgage approved is not as easy as most people think due to specific criteria that need to be met. However, at Pacific lending Group, we have recommendations that you can follow to increase your chances of getting approved for a mortgage loan. Read more
Factors That Matter When Refinancing Your Mortgage
Before deciding to refinance the mortgage on your home, you must take into consideration several factors. Failing to do so may result in a higher monthly payment than you want or even lead to paying PMI after refinancing.
The following information will explain what those factors are and how they can affect your refinancing experience.
Choosing the Right Lender
An important factor to consider when refinancing your mortgage is who will process your loan. Many lenders are floating around, but only a few of them will care about their customers and give them loans they can afford.
You should always shop around, compare interest rates and loan terms before going with a specific lender.
Interest Rates
One of the most critical factors when refinancing your home mortgage is the interest rate. This can have an extreme impact on how much you pay back every month. If you choose to refinance your mortgage, it is important to ensure that the interest rate after refinancing is at least half a percent lower than before refinancing. Failing to do so may lead to paying more per month than you originally planned.
Check for Hidden Fees
Before applying for any mortgage, you must check for hidden fees. This will ensure that you are not surprised by any costs or added interest during the time after refinancing your home. Many lenders try to charge customers fees to get them into a loan they cannot afford. Make sure these fees are reasonable before signing any contracts.
Home Equity
The amount of equity you have in your home can also affect how much you pay back per month after refinancing. Lenders will consider the current appraised value of your home when offering a new loan, but they will probably allow for higher payments if there is potential room to increase the price of your house. For example, if your house is worth $100,000 and you owe $80,000 to the bank, they may allow for higher monthly payments than they would if all of that money was already paid off. Also, if a home equity or is too low, refinancing your mortgage will probably be very difficult.
Your Credit Score
Your FICO credit score is the most critical factor when trying to refinance your home. If you have high credit, refinancing will probably be easier for you than poor credit.
Before choosing which lender to go with, your chosen loan officer will check your latest credit report to determine the best loan option for you. If they do not, it may be time to start shopping around for a new lender since your credit score is very important to them.
Choose Pacific Lending Group to Refinance Mortgage in Florida
Looking to refinance your home? Call Pacific Lending Group. They have worked with thousands of customers to help them secure loan options they can afford. If you would like to learn more about their services, including available interest rates for refinancing, feel free to give them a call today at 954-227-4727