7 Things to Know about Refinancing

With mortgage rates at record lows, many people are looking to refinance. Here are 7 things you need to know in today's market.

1. Percentage Point break - a good rule of thumb is that the rate needs to be a full percentage point less than your current rate.
2. Half rejected - with so many people looking to refinance and the tight credit market, do not expect to be automatically approved even if you do have a lot of equity in your home.
3. FICO scores - 720 used to be the Gold Standard, now they are looking for 740 and above to get the best rate. Lower FICO scores equal a higher interest rate.
4. Equity & Documentation - equity is key and you must be able to document the equity and will also have to document your income and assets.
5. Fee Paying Options - fees range widely depending on each lender and look out for lenders adding in buy down points to get you that super rate. If it takes more than two years to pay back the closing cost amount with the monthly savings, it may not be worth it.
6. Shop around - things are changing daily so if one lenders says no there may be another that says yes.
7. Be patient - with the wave of refinancing there is a back log of loans so it may take some time to get the loan approved and closed.

Here are two lender contacts that I recommend to my clients. Feel free to mention my name if you give them a call.

Joel Greer - Carolina One Mortgage 843-414-2489, joel.greer@gbmail.com

Ted Honney - First Federal 843-708-0250, thonney@firstfederal.com

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Call Randall Sandin at 843-209-9667 for more info about the Charleston area