During this uncertain time, you may be concerned about what options are available to save your home. Well, the good news is that you have options. Many banks are offering payment relief options. In fact, in the state of California, the Governor has offered temporary relief from evictions and foreclosures. But, you may want to refinance now and reduce your payments.
Money.com recently put together the Best Mortgage Refinance for 2020. In the article, you can find information on getting more affordable payments and rates. The article also provides lender reviews and details on the important things you should understand about refinancing your mortgage.
So, What is Mortgage Refinancing?
Refinancing is a process of replacing an existing loan with a new one. The idea is to take the new loan and use it to pay off your current debt. However, it is important to understand that even if you refinance, your loan balance will not change. This means that you will need to continue to make payments. Also, if any collateral was used for the loan, it will likely still be required for the new one. Should you choose to refinance, you will want to make sure that the new loan has better terms that will benefit your situation. Make sure that you review all the fine print before you sign anything!
Important Things to Know
Money.com also provides more information on the following important things to know about refinancing:
- At times, there are costs to refinance (transaction fees and increased interest rates)
- Your loan length could be extended
- Better credit scores typically result in better interest rates
- Maintain a low debt to income ratio
- Do your research! Research as many options as possible.
- Consider traditional banks
- Watch out for prepayment penalties
- Stay informed and avoid common mistakes
Are There Other Options?
We strongly encourage you to take time to look into all possibilities. Refinancing may be your best bet, but how will you know without weighing all of your options?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. Making sure that we are the perfect fit for you will allow you to be completely comfortable sharing intimate and difficult details of your case. We will go over all options that will work best for your unique situation. Call us today to set up a free consultation.