It’s tough times for everyone in the real estate industry, even though the future looks bright. For people who are looking to refinance their loans, now is the right time, since getting a mortgage in 2014 is going to cost you a lot of money, and you may not even qualify for one! According to reports regarding the real estate industry, it is going to be extremely hard, not to mention very expensive to get a mortgage loan in 2014. This is because of the issues which the U.S Government may enforce on the real estate industry.
Experts all over the country are suggesting that you should refinance your mortgage before those issues become effective, if you want to avoid paying exorbitant interest rates on loans. The FHFA (Federal Housing Finance Agency) has increased the mortgage fees of Fannie Mae and Freddie Mac, which will become effective in the early part of 2014. The new increase on interest rates will hit the borrowers, right where it hurts most, in the pockets!
Why the Change on Mortgage Loan Rates?
The government does not want a monopoly of Freddie Mac and Fannie Mae on the private mortgage loan market, which is why they are raising the cost of mortgage loans. This will help the government in the long run, as smaller loans will not affect the government budget wise.
Why is it the Right time to Refinance?
If the experts are to be believed, the interest rates on mortgage loans are set to sky rocket in the first quarter of 2014, which is why they are advising all those people who have low interests on their loans, to consider refinancing them in order to avoid high fees and tax rates.
In order to further help you, here are some factors to take into account if you are willing to refinance your mortgage loan for your home right now.
Get a Higher Credit Score
The best way to increase your chances of refinancing your loan is to increase your credit score so that lenders are not too fussy when it comes to lending. It also shows that your financial records are healthy.
Lower Your DTI Ratio
The DTI (debt to income) ratio is the amount which is between your debt and income. The higher the ratio, the harder it will be for you to acquire a loan. You can start by reducing your debts and increase your chances of refinancing.
Courtland Building Company would love to help you plan your green home, call us today: (281) 932-4494