Know the Facts about Refinancing
Can Underwater Mortgage Holders Shop Rates?
The truth is that if your loan is owned by a large lender like Fannie Mae, many local lenders may be able to offer you the same program (in this case, it would be the government program HARP). Since many lenders offer this program you can, and should, shop around to find out what all your options are. Like all refinances today, however, being prepared is the best way to ensure that your refinance succeeds.
How Soon Can I Refinance?
With interest rates far lower than they were even 3 months ago (by about 0.5%) many homeowners are asking if it is possible to refinance again. Unless the recorder’s office is backed up, you should be able to refinance again without running into any unforeseen road blocks. I would advise, however, that refinancing too often is usually not a good idea.
Should I Borrow From my 401k to Pay Down My Mortgage?
I don’t like to recommend this option, even for those with a second mortgage looking to get a much lower rate. In certain circumstances it can be a financial advantage, but in most cases the return on the investment isn’t worth losing equity in your retirement savings. If you are thinking of using this or other types of savings to pay down your mortgage, you should consult a financial planner to make sure it is the best decision.