What you need to Know about Refinancing in Greensboro, North Carolina

Greensboro has a population of over 275,000. It is the third largest city in the state of North Carolina. It is also a major business centre for the textile and transportation industries. Nowadays, the people of this city are considering mortgage refinance with mortgage rates at an all time low. If you are interested in refinancing, then you will have to figure out how things work. Here are some valuable tips to enlighten you.

It is Challenging

Don’t expect the bank to hand out loans just because you have a good credit score. The loan application process takes a lot longer than it used to before. Given the number of applications, it is a challenge getting accepted.

Consider the Debt to Income Ratio

This ratio indicates the amount of money you pay on a monthly basis for your mortgage with regards to your income level. The debt to income ratio varies depending on the financial institution and the state of your finances. If, in any circumstance, you have to pay half or more than half of your salary to mortgage fees, then just say no.

How much is your Home Worth?

If you have refinanced more than once, then your home’s equity will have lowered. The bank will only loan you the money based on your home’s current value. It doesn’t matter what you paid for it earlier.

Pay the Points

A lot of people don’t pay the points when they initially get the mortgage. A point fee is one where you pay a 1% fee on your principal amount. It is paid upfront to lower interest rates. If you didn’t pay this fee earlier, now is the time to do so because it’s worth it. You are likely to get a better rate than the average once you pay this fee.

www.mortgagerefinance.com is a must visit site for residents of Greensboro. Here you will find information related to home loans, mortgage rates and refinancing. The mortgage calculator on our website is a great tool for comparing financial information.