Top 10 Reasons to Refinance:
- Lower Interest Rate
- Eliminate Private Mortgage Insurance ("PMI")
- Combine 1st and 2nd Mortgage
- Take out equity for investment needs
- Consolidate consumer debt
- Convert from Fixed Rate to Adjustable Rate Mortgage (ARM)
- Convert from Adjustable Rate to Fixed Rate Mortgage
- Convert from principal and interest payment to interest only payment
- Shorten the term of the note
- Divorce Situation/Change of title
Other Reasons why you should refinance with Scout mortgage TODAY:
- Refinance NOW in case property values fall further. You may not be able to refinance down the road.
- Get the monkey off your back. If you have an adjustable rate mortgage, chances are your payment is going up soon. ARM mortgages are the number one reason for foreclosures and put you in a dangerous category: If you took out an adjustable rate mortgage with a starter rate under 4% in the last couple of years, there is a 33% chance you will go into foreclosure. Take a slightly higher payment now rather than a "foreclosure" payment later.
- Plan on Moving? With houses taking about 9 months to sell, you probably want to take the cash out of your current house BEFORE you list it (once you list it, banks won't touch it; once you move out of it, you are subject to investor (higher rates). Take the cash out, move it to an interest only product (why pay Principle?). You now have the cash to move (cushion) AND you have reduced the payment IN CASE you convert it to a rental. NO-COST REFINANCE ONLY.
- BE PROACTIVE. If you are having problems with the payment (lost job, unexpected expenses), be proactive. There are several mortgage programs that can increase your cash flow such as interest only or less than interest only mortgages. More importantly, make sure you refinance BEFORE your credit gets impacted. Miss one Visa payment and the banks will either decline your loan OR increase your rate dramatically.
