One of the few silver linings in the dark economic cloud might just be a window for homeowners to improve their current mortgage terms, or leverage their home equity for an all-important purchase.
Interest rates are at their lowest in years, and refinancing your home lets you take full advantage of these rates. But the key here is doing your homework before you set out, and, most importantly, seeking a safe and dependable lender.
Wells Fargo Home Mortgage’s reputation as a secure lending organization has only been reinforced in these perilous times, and the company is offering refinancing choices that address many of the unique challenges facing homeowners today.
National Gay & Lesbian Chamber of Commerce members can now take advantage of the NGLCC Home Financing Program that works exclusively with Wells Fargo. By participating in the NGLCC Home Financing Program, NGLCC members as well as their employees and immediate family members can enjoy an easy and efficient route to refinancing.
With Wells Fargo, you may be able to lower your monthly mortgage payment, switch from an ARM to a predictable fixed-rate loan, access cash for large expenses or debt management and obtain a shorter term to pay off your mortgage faster.
But before you decide to go for refinancing, here’s a useful checklist provided by Wells Fargo to ease the decision-making process:
1. Determine Your Goal
If you want to change or improve the terms of your current mortgage, answer the following questions first:
• Should you lengthen the term of your loan, thereby lowering your monthly payments?
• Can you shorten the term of your loan, paying off your loan sooner?
• Is the current interest rate for refinancing lower than your existing rate?
• Can you pay for the closing costs and transaction fees?
• Does your current lender offer special deals for refinancing?
• What effect will the refinance have on your payments and your home’s equity?
Once you’ve found the answers to the above questions, compare your best refinancing option with your current mortgage. Determine your payoff amount, including any prepayment penalty.
If your goal is to have an ongoing source of funding in order to remodel, make major purchases, pay off other loans and consolidate debt, or meet any other financial needs, consider the following:
2. Determine the Amount of Money You Need
Is this an unknown amount, likely to fluctuate over a long period of time? If so, a home equity line of credit might be your best financing option. You can take money out as you need it and pay interest only on what you borrow.
3. Assess Current Interest Rates
Are interest rates generally better than your existing rate?
• If yes, cash-out refinancing (replacing your existing mortgage with a larger amount) might be the one for you.
• If no, getting a home equity account can be a smart way to leverage your home asset. It allows you to keep your current mortgage intact.
4. Determine the Details of the Products You're Considering
Be sure to consider closing and transaction costs, as well as your new monthly payment. Ask your lender for help.
5. Prepare to Apply
For your application, assemble all the required financial information, such as:
• The year property was acquired
• The original cost of the home
• Payoff balances for your first and any second mortgages, if applicable
• Income tax forms
• Income information
• Information regarding other debts and bank statements.
The next step is to work with your lender to set up an appraisal and get title insurance, and, finally, pay any closing costs, transaction fees or taxes required, if not already included in the loan.
Still unsure? Learn more by calling 866-208-6471 for more information, or visit the special Wells Fargo-NGLCC Web page https://.benefits-mortgage.com/affinity/home.wfm
