It is often preferable to buy your next home prior to selling your current home.   One huge advantage is that you can patiently wait for the perfect home to come on the market and get into contract without making your purchase contingent on selling your current home – something that many sellers will not agree to.  By doing this, you can close on your new home and upgrade – such as painting or installing new flooring – before you move into your new home.  But can you afford this?  The reality is that, in most cases, you will need a lender to agree that you can afford both sets of payments, even though only temporarily.  The only way to really know is by completing the pre-approval process.  It’s certainly worth considering this option!

Every loan has costs.  But when a borrower locks in a rate that includes a lender credit which meets or exceeds the costs of the loan, then some might say the loan is “no cost.”  (In the case where the credit exceeds the closing costs, the borrower actually “makes money” which can be applied toward property taxes and/or hazard insurance.)   We think the more accurate term would be a “no net cost” loan. We’ve helped many clients lower their rates with no net costs, without increasing their loan amounts, and even without “starting the clock over”.  (For instance, when a client is 3 years into a 30-year loan, we can provide a loan with a 27 year term if desired.)  Keep in mind that a borrower might instead opt for a lower rate with less lender credit.  We are experts at helping you analyze which option makes the most sense for you.

There are many reasons one might consider refinancing.

Improve rate.  If it’s solely about the interest rate, then the answer is “Yes!” anytime you can lower your rate, even if only by small amount, for “no net cost”.  (See FAQ “Is there really a no cost loan?” above.)   But there are other reasons one might consider a refinance.

Consolidate debt. In many cases, a family can reduce monthly obligations by hundreds or even thousands of dollars by consolidating debt (credit card, auto loans, etc.) into a mortgage.  In most cases the mortgage payment will increase, but eliminating other payments means there are dollars left when the month ends.  We love to help families get some breathing room by consolidating debt and we always encourage them to take advantage of this fresh start and avoid repeating the debt cycle.

Position for an investment.  If you have equity in your home and want to tap into it to invest in a business or prepare to purchase a property, then refinancing can make sense.

Please let us help you examine the pros and cons to help you make an informed decision.

This is where using a mortgage broker (like us) makes sense.  We shop the rates and programs of dozens of lenders, looking for the best rate for your unique situation.  When a borrower uses a bank or retail lender, he has access to only their programs and rates.  The lender often must pay not only the loan officer, but also his manager, her boss and the VP of Sales.  By the time you get your rate from them – assuming they have a program that will work for you – well, let’s just say it’s not exactly ideal.  How do you get the best rate?  Let us search for you.  We’ll need to know a few things about you to do it right, because it’s not one-size-fits-all.

Thankfully, there are more "appraisal waivers" issued than ever before.  How can you know whether you will need one or not?  After you apply for a new loan, we will use automated underwriting to see what kind of documentation will be needed, including whether or not an appraisal will be needed.