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Refinance Now

By C.J. Coury

Although it is certainly more challenging to obtain a new mortgage loan in today’s market you simply must make the attempt if you have an interest rate above, at or near 6%. It is widely believed that rates will begin to rise this spring and could increase as much as 1% or more from today’s historic lows, eliminating the opportunity to realize the benefits of refinancing for many.

While it is true that many loans today are being scuttled by evaluations and qualifying documentation, it is also a fact that there are options available to overcome these obstacles. Although there are no attractive “no documentation” loans available on the secondary market any longer, there are some lenders with available space on their balance sheets to house “portfolio” loans that make sense to them.

Other possibilities include one of the government sponsored refinance programs that allow for a Loan to Value ratio of 105% to 125% as well as streamlined refinances.

The best place to begin your search for mortgage interest savings is by contacting your current lender to see what special options they may offer for their current customers. A lender who currently holds a mortgage may be more willing and able to make allowances for a new loan, provided the borrower’s position is improving, as this is in their best interest as well. Of course, if the new loan is to be sold on the secondary market their guidelines may be restricted by those of the purchasing agency.

If your current lender is unable to provide a new, more attractive, loan for you my next recommendation would be to locate a lender who will either not charge you any fees in advance of closing or will refund all up-front fees if they are unable to approve your loan application as requested. This will enable you to shop around to different lenders without fear of the enormous losses you would incur otherwise.

The bottom line is that it is in your best interest to make a concerted effort to locate a lender who will provide you with the monthly savings you could realize by refinancing your home loan. Even if you have made an unsuccessful attempt recently you may not have researched and exhausted all of the possibilities. Your monthly savings, when added to those of thousands of other borrower’s, could help make a significant impact on the current economic condition by creating spendable cash flow.

You should move quickly as time is not on your side – make the call today!

C. J. Coury is a Senior Vice President with Bank of America and oversees their residential mortgage division serving Sarasota, Manatee and Charlotte Counties. Prior to joining Bank of America in 1995, C. J. was President of Mortgage Brokers of America in Birmingham, MI for 7 years. He has been an active mortgage finance professional since 1983. C. J. may be reached at (941) 952-2888 or by email at charles.j.coury@bankofamerica.com.

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