Mortgage contingency
The mortgage contingency is a crucial component of the home-buying process. It outlines your commitment to securing financing for the property purchase. Specifically, you notify
Should you refinance your mortgage and when?
Refinancing a mortgage means paying off an existing debt and replacing it with a new one.
When refinancing, you can consolidate debt, adjust loan terms, lower your monthly payment, or even take some cash out of the equity in your house to pay bills or make improvements.
Secure a Lower Interest Rate
Lowering the interest rate on your current loan is among the best reasons for refinancing.
Typically, refinancing makes sense if you can lower your interest rate by at least 2%. However, many lenders assert that 1% savings is a sufficient inducement to refinance.
A mortgage calculator can be a useful tool for planning some of the expenses.
Convert an ARM to a Fixed-Rate Mortgage
Borrowers typically receive a lower interest rate at the beginning of an adjustable rate mortgage (ARM).
However, the interest rate may change after a predetermined period (often 5, 7, or 10 years), and not necessarily in the borrower’s advantage.
Because of this, some homeowners choose to convert their adjustable-rate mortgage (ARM) into a fixed-rate loan, which eliminates this fluctuation in interest rate.
Shorten the Loan's Term
Homeowners occasionally have the option to refinance an existing loan for a new loan.
The refinancing happens with a much shorter term without much changing of the monthly payment, when interest rates fall.
Get Rid of PMI
Refinancing is not always necessary to remove private mortgage insurance from a traditional loan.
You can get rid of PMI without paying off your loan, unlike FHA MIPs. As soon as you have enough equity—typically 20%—you can ask for cancellation.
The bottom line
Refinancing can be a great financial move if it reduces your mortgage payment, shortens the term of your loan, or helps you build equity more quickly. When used carefully, it can also be a valuable tool for bringing debt under control.
Real estate updates
The purchase and sale (P&S)
Upon completing (or waiving) your due diligence, the next step is to sign a Purchase and Sale Agreement (P&S). This step is somewhat unique to
Contingencies and due diligence
Contingencies and due diligence https://youtu.be/oNDDnpSEwh4 After your offer is accepted, you have a designated period, typically ranging from a few days to a few weeks,
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Book an appointment with us. Reach out now for more info! Call or text Stephanie at (617) 765-9641
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
Book an appointment with us. Reach out now for more info! Call or text Stephanie at (617) 765-9641
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
Spread the word!
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Twitter
LinkedIn
Email
Book an appointment with us. Reach out now for more info! Call or text Elaine Goldman at 857-297-4830
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
Book an appointment with us. Reach out now for more info! Call or text Elaine Goldman at 857-297-4830
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
