Al Martinez

C&R Mortgage

847.707.5300

al@yourmortgagepro.net

Al Martinez

  Mortgage Broker Company

Sleepy Hollow IL

Mortgage Broker Company

Sleepy Hollow IL

Refinance Mortgage: Important Things You Should Know Before Refinancing Your Kane county Home

Thinking about a refinance mortgage? You’re not alone. Refinancing makes up a large percentage of the applications that mortgage companies brokers in Kane county, IL receive each year. Considering the near-record-low interest rates, it’s easy to see why. Once you figure out the mortgage calculations with the current low-interest rates compared to the rates you may have secured when you first took out your home loan, you could stand to save a substantial amount of money in the long run.

With that said, however, before you attempt to refinance, it’s important to speak to a reputable mortgage company broker and take several factors into consideration. Here’s a look at some important things that you should know if you’re thinking about a refinance mortgage.

Find Out the Equity of Your Home

The equity of your home is one of the first and most important factors that you will need to consider when you’re thinking about refinancing, as your equity will determine whether or not you are eligible for a refinance mortgage. If you have very little or no equity in your home, refinancing may not be possible, especially with a conventional loan. Fortunately, home values have been steadily rising, so there’s a good chance that you have acquired a good bit of equity. However, even if you have little equity, many mortgage companies do offer programs that you may be able to take advantage of. A knowledgeable and experienced mortgage broker, like AL MARTINEZ, will be able to help you determine if you qualify for a refinancing program.

Debt-to-Income Ratio

Debt-to-income ratio is a measure that is used to determine the amount you owe on your monthly debts compared to your monthly gross income (the amount you earn each month before deductions, such as taxes, health insurance, retirement benefits, etc., are taken out of your pay). Generally speaking, the ideal debt-to-income ratio for refinancing should be no more than 36%; however, if your debt-to-income ratio is higher, that doesn’t automatically mean you won’t qualify for refinancing. A reputable MORTGAGE BROKER may be able to assist you or at least provide you with advice to bring this figure down so that you can qualify for a better rate on a refinance mortgage.

Your Credit Score

After the mortgage crisis of 2008, many lenders have increased the standards for refinancing options. One of those standards is your credit score. Generally, mortgage lenders want their applicants to have a healthy credit score 670–740 in order to be considered eligible for a low-interest rate on a refinance mortgage. Do note, however, that even if your credit score is lower than the recommended, you don’t have to automatically give up hope; there may still be options available for you. AL MARTINEZ can help you explore all the different options and provide you with valuable advice that you can use to increase your credit score.

Refinancing Fees

Refinancing your mortgage – especially at a lower rate than you’re currently paying – can help you save a significant amount of money over the life of your loan. However, many Kane County homeowners don’t realize that there are fees associated with refinancing. Typically, it costs around 3% to 6% of the total amount of the loan when you’re refinancing, though there are ways that you can lower the expense or include the cost into your new loan. For example, if you have a good bit of equity in your property, you may be able to combine the expenses that are associated with refinancing into the new loan. Also, there are lenders that do offer what is referred to as “no-cost” refinance options. When you work with AL MARTINEZ, he will always explore all avenues to help you get the best deal possible on a refinance mortgage.

Understand Your Taxes

A lot of Sleepy Hollow, IL property owners depend on the mortgage interest deduction to bring the cost of their federal income tax bill down. If you do refinance and the interest rate on your new mortgage is lower, your mortgage interest deduction may also be lower. However, that’s not to say that you’ll definitely end up paying more in taxes. Experienced mortgage brokers, like Your Mortgage Pro AL MARTINEZ – will be able to help you review your taxes and determine the impact refinancing may have on your taxes.

Know the Current Refinance Rate

It’s important to understand that the rates on refinance mortgages change on a regular basis. The refinance mortgage rate today may be different next week or even tomorrow. That’s why it’s important to get in touch with an experienced mortgage company that has a proven track record of success, that can provide you with the most updated information, and that offers the most competitive rates possible, like Your Mortgage Pro Al Martinez.

For the Best Refinance Mortgage Options in Kane County, IL, Contact Al Martinez Today!

If you’re interested in refinancing your mortgage and you live in the Sleepy Hollow Area and you’re looking for mortgage broker near me, get in touch with one of the leading brokers in Kane County, IL: AL MARTINEZ. He has successfully helped countless homeowners throughout the region secure lower rates on their home mortgages and save a substantial amount of money on the life of their loans. To learn more or to schedule a consultation with one of knowledgeable and experienced mortgage broker, give me a call at (847) 707-5300. I’ll be more than happy to walk you through the process and assist you with finding an option that will best work for your needs.

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To get an honest, accurate, current rate quote, just contact me or call (847) 707-5300.  I’m not here to ‘hard sell’ or trick you into giving me your social security number just to pull a credit report.  You either trust I know what I’m talking about and will get you an extremely competitive rate or you don’t.

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