Refinance your ARM loans before rates go any higher

Should I refinance my 2 years fixed loan now?
By: Ken Go (888)822-5363

There have been a good number of inquiries as to whether it is time to refinance home loans. Of course, the answer definitely would depend on the whole scenario for each borrower. Our company policy is very different from other mortgage companies. We make sure we get all income/asset/credit information from the borrowers and then make sure that the appraisal value is acceptable to the program selected. Then we formally approve the loan and issue a commitment to the borrowers with a guaranteed rate lock and a guaranteed closing fees. All these processes are done in a matter of minutes, as long as all income information and appraisal value are verified.

With this process, I am able to make sure that the clients fully understand how the process of the loan works. We make sure that you are happy with the whole transaction and advise you with options that will benefit you the most. I wish I could say yes to everyone who wants to refinance their loans. My policy might be conservative, but it is guaranteed that if we take your loan, you will close on schedule and on the rate and terms that we first disclose to you. The only thing I cannot control in a transaction is the title insurance. There are instances when a property has been recorded incorrectly with the county and it could take months to resolve that problem. We would normally know about these things in 3-5 days.

Here are some of the reasons for refinancing:



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Second Mortgage over 10%, Can I Refinance It?

Question: About 10 months ago I purchased a property with no money down, my credit scores were in their high 500’s and our property value now has gone up by 20% since we purchased the property. I have a prepayment penalty on my loan and I would like my payments to be reduced. What should I do?Ken Go: This caller, I spoke with about 4-5 months ago, I reviewed their credit history and advise them a few things. I recommended for them to apply for two more credit cards because they have very few trade lines. I advised them to pay off the small credit cards, use only one major card and do not close any open accounts. With the payments of the mortgage being on time, two new credit accounts and two other open accounts with zero balances. The scores of this borrower increase to 660 in 5 months. I am not recommending for them to pay off the first mortgage due to a very high prepayment penalty. They also still want to enjoy the interest only payment on it. So, we refinance their second mortgage to a 7% fixed rate mortgage, which lowered their payments by $80.00 with some cash out to pay off minimal debts. This client knows they will refinance this loan again when they are ready for a fixed rate mortgage. That is why this loan they got is a “NO CLOSING COST” loan; nothing was also added towards the loan balance.

Thank you so much for your inquiries, I enjoy very much giving advice and helping our readers obtain better financing. Please call or write to kennethgo

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