Tips for Refinancing Your Dallas Mortgage

The year of 2013 has seen rampant action in the mortgage and home buying markets.  Despite the recent increase on mortgage rates, it’s not too late to improve your mortgages strategy and save thousands of dollars on the life of your Dallas mortgage.  The following simple tips for refinancing your Dallas mortgage could pave the way towards massive home savings.

1. It’s not too late to consider refinancing:  Yes, as mentioned, mortgage rates aren’t at the record lows they were at a few months ago, but they’re still incredibly low when compared to where they have been at almost any point in history.  Aside from interest rates being low, the Home Affordable Refinance Program (HARP), currently allows homeowners who may owe more than their home is worth.  The HARP program is helping families save $4,300 a year on average, according to a recent report by Fannie Mae.  But don’t wait too long, interest rates are likely to go up and the HARP program won’t be around forever.  Follow this link to learn more about HARP 2.0.

2. Compare FHA loans versus conventional loans:  FHA loans can provide a lot of flexibility to qualifying homeowners by allowing a Streamlined refinance, but is it worth it?  While FHA streamline refinances may add flexibility, recent changes to FHA loans now require monthly mortgage insurance to remain for the life of the loan.  Even if you are currently on a FHA loan, consider your options for a conventional home loan.  The upfront savings and ability to avoid monthly mortgage insurance for the life of the loan could make a conventional loan a lower cost home loan strategy.

3. Deeply underwater?  Keep swimming:  Having already touched on how a HARP loan can help you save thousands of dollars, the same type of loan has recently helped homeowners that have fallen deeply underwater.  In late 2011, HARP was amended and re-introduced as HARP 2.0, and among its main re-configurations were to allow borrowers with loan-to-value ratios above 125 percent to now be eligible for a refinance—an option that was not previously available to these suffering borrowers.  In fact, since HARP 2.0 came about, 316,948 deeply underwater borrowers have refinanced, according to a recent FHFA report.

This is just the beginning of how you can start saving on your mortgage.  We’d love the opportunity to help you find out if you’re taking advantage of the best available options.  Contact us for a complimentary mortgage review and start saving in as little as 30 days.  It would be our pleasure to assist you in finding the best mortgage strategy for your Dallas home.