Top 10 Myths About Refinancing: What Colorado Homeowners Should Know
If you’re looking to get a Colorado home refinance loan, you’ll quickly find that there’s a lot of misinformation out there. At Mortgage Solutions Financial, we want you to know what you can expect from refinancing your home.
10 Myths About Colorado Home Refinance Loans
The internet is full of incorrect information regarding home refinancing. Here are a few of the most common myths you need to know.
1. Refinancing Is Just for Home Loan Debt
You can refinance your house to help pay off any kind of debt, including credit card debt, personal loans, and outstanding bills, not just home loans.
2. It’s Hard to Get
Refinancing your home is as easy as applying for a loan. Enter your information and speak with a lender to find your options.
3. There Aren’t Fees
Unfortunately, you will have to pay the closing costs on Colorado refinance loans. This is typically around 2-5% of the loan’s principal.
4. The Difference in Interest Must Be Extreme
Refinancing any home loan to a lower interest rate will save you money in the long-run. You don’t have to wait for the rates to be hugely different.
5. It Won’t Simplify Things
The more debt you have, the harder it is to keep track of payments. Refinancing your home lets you group your debts into one lower interest monthly payment.
6. You’ll Qualify if You Have a Mortgage
Just because you have a mortgage on your house and make payments on time doesn’t mean you’ll automatically qualify. You still need to apply and meet the current market qualifications to get the loan.
7. You Don’t Need to Shop Around
It’s always best to get quotes from multiple lenders. This will help you find the best loan and the lowest interest rates for your home loan.
8. You Have to Pay Cash for Closing Fees
You can actually roll the closing costs for the refinance loan into the loan itself. You don’t need cash to make it happen.
9. It’s Tough to Qualify at All
Believe it or not, it’s fairly easy to qualify for a home refinance loan. Speak with a lender to find out where you stand.
10. The Loan Must Have the Same Term
You can refinance from a 30-year mortgage to a 15-year mortgage without a problem. It depends on your personal preferences.
If you’re looking to apply for a Colorado refinance loan, apply online now and get the process started.