| As reported in the media recently, the values of | | | | Refinance Scoring Guide |
| homes continue to decline to lower levels than | | | | 0-1 No. Put off refinancing to another time. |
| previous years and mortgage rates have dropped. | | | | 2-4 Maybe. Consider a mortgage analysis in the near |
| This has made many homeowners ask themselves, | | | | future. Now might be a good time to refinance and put |
| "Should I refinance my mortgage or not?" | | | | you in a better position. |
| Under today's conditions, the fact remains that those | | | | 4-6 Yes. Speak with a mortgage professional soon to |
| who do prepare for declining home values will reap big | | | | review your loan options before interest rates change. |
| dividends. For example, if the value of your home | | | | This should have given you a good idea if refinancing is |
| declines below your current mortgage balance, you | | | | a good option for you. If you scored between 2-6, |
| may not be able to refinance in the future. Keep in | | | | consider a mortgage analysis from an experienced |
| mind that refinancing should put you in better financial | | | | mortgage consultant. However, before you get started, |
| position. There are many questions that you should ask | | | | a lender might want to charge you an upfront |
| yourself before considering to refinance. Take a quick | | | | application fee before they review your credit. You |
| quiz to help you decide if now is the right time to | | | | might not even qualify for a loan at the time. If not, you |
| refinance. | | | | might lose your application fee which can range from |
| The Refinancing Quiz | | | | $300-$400 dollars. I recommend working with a |
| | | | mortgage professional that does not require an |
| 1. Would you like to lower your monthly payment? | | | | application fee before reviewing your credit report. |
| 2. Are you interested in saving thousands of dollars in | | | | Once you have picked a mortgage professional, now |
| interest? | | | | you are ready for your mortgage analysis. |
| 3. Do you have debt to consolidation into 1 easy lower | | | | A mortgage analysis is a very simple process and it |
| payment other than making many monthly payments? | | | | only takes about 10 -15 minutes. The mortgage |
| 4. Do you have an adjustable rate mortgage or high | | | | professional will ask you questions about residency, |
| rate fixed rate mortgage that you would like to change | | | | employment, income, assets along with reviewing your |
| to a secure a low fixed rate? | | | | credit report. Shortly after, you should receive a |
| 5. Would you like to opportunity to pay your loan off | | | | customized proposal of your refinance loan options. |
| faster than the original 30yr., 20yr., or 15yr. term? | | | | Once you receive your results of the analysis, |
| 6. Do you need to get cash from the equity of your | | | | compare it with the results from your quiz above. At |
| home for improvements, college, or vacation? | | | | this time, you should have a better idea if refinancing is |
| Add up the number of times you answered YES to a | | | | right for you. If you are still unsure, meet with your |
| question and see where you fall in the scoring guide | | | | mortgage professional to explain your options further. |
| below. | | | | |