Is Refinancing the Right Move for the Residents of Norfolk, Virginia?

Norfolk has a population of over 250,000 and is Virginia’s second largest city after Virginia Beach. The city has a big harbor and is a popular trading route in the country. Norfolk is located beside the Elizabeth River. It is often considered to be the historical and cultural hub of this region. Nowadays, a lot of people in Norfolk are considering refinancing. Ever since the Federal Reserve bought mortgage backed securities, mortgage rates have fallen considerably. This is a great incentive for people to get mortgage refinance. But is it the right move? Let’s discuss in detail.

Does it make Financial Sense?

Financially, does refinancing make sense? You need to consider the pros and cons. Look up costs before you make any decision. A low interest rate will benefit you, so keep that in mind. A short term mortgage will also help you build equity. Can you switch to a fixed mortgage rate? If the answer to these questions is a “yes”, then refinance mortgage is a good idea.

Can you afford the mortgage refinance cost? Normally it is 2 to 3 percent of the total loan amount. So keep the costs in mind before you proceed further.

Who can apply?

Do you fit the profile of someone who would get refinancing? Think of it from a lender’s point of view. If you owe more money than your house is worth, then you are unlikely to get approved for a mortgage refinance. However, property prices are always on the rise and you may end up recovering your costs in time.

What if you are in a Bad Situation?

Financial institutions aren’t keen on lending to people with weak financial records. Low credit scores and unstable income are hardly any encouragement. A mortgage broker is a more viable option for people with poor finances. They have a lot of contacts and can broker a deal from different sources.

Anyone from Norfolk seeking more information on finances can visit www.mortgagerefinance.com. They will find advice on home loans, refinancing and mortgage rates on our website. You can also use our trusty mortgage calculator to figure out your finances and plan ahead for the future.