Are you a struggling homeowner who is looking for a mortgage refinance loan to avoid losing your homeownership rights? If answered yes, here’s an easy representation of the entire process. Suppose you have a mortgage loan with an outstanding balance of $200,000 with an interest rate of 12% on which you are making monthly payments of $2000. If you’re defaulting on such a loan, you have to shop around and get multiple quotes from multiple lenders before signing the loan document with a new mortgage lender. Take into account the closing costs, the interest rate and the required monthly payment on the new loan. If lender A offers you a rate of 11% with closing costs of $500 and monthly payments $2069.54, lender B offers you 8% rate, $200 closing costs and $1674 as monthly payment and lender C offers a 10% rate, $100 closing costs and $1931 as monthly payment, which option are you supposed to choose?
Well, certainly the terms and conditions offered by lender B will be convenient for you as you’ll be able to make the monthly payments with ease. You immediately apply for the loan, your loan application gets approved and you start making lower monthly payments on the new home mortgage refinance loan after paying off the existing balance on the present mortgage loan. However, you do need a good credit score to get the loan application approved without any further issues.
Make sure you pay the monthly installments towards your new mortgage loan on time so as to avoid a hit on your credit score. Save your home from a foreclosure and live a debt free life.