Common Misconceptions about Mortgage Rate

Though mortgage rates have been on the decline in the past few months, it has given ample opportunity for home owners to refinance at a lower rate. It is commonly observed that nearly a million eligible homeowners couldn’t take advantage of this picture and improve their financial state of affairs. There are also another few million who can benefit from the guidelines of recognized refinance companies, but haven’t been benefited yet. When we studied the reasons for these circumstances, we have found 5 misconceptions among homeowners about mortgage rates that prevent them from refinancing. Here, they are:

1. There will be a reduction in the rates

It’s not the case. Though mortgage rates have jumped over on a weekly basis lately, the decline has been negligible. It is seen from the current market conditions that these rates will not run down further. A fractional decline in percentage, in rates, is certainly not a significant issue.

2.       It is not worth for me

House owners have thinking that they will not be able to keep in the long run because of the recent fall in the rates compared to what they are currently paying. However, the shorter loan terms are unquestionably valuable. For those owners who believe that refinancing wouldn’t assist them, it’s suggestible to communicate home loan experts and use information about different plans, which are useful, in saving your money not only now but also in the future. The appropriate measures will ensure the best value for your investment.

3.       This whole process is a struggle

Not really! Here is what. There is a common trend of writing negative reviews in online forums. Nobody writes about how good and easy refinancing is. You will find a number of stories on internet saying that refinancing takes several months. But this is not a true picture. With the latest knowledge and dedicated customer services, we can be ensured that the loans will be processed within a month.

4.       Many people think that they won’t satisfy the eligibility criteria

Don’t worry. Even if, you don’t pass now, it doesn’t mean that you will never. Earlier it was expected that potential refinance clients may have been rejected. But nowadays because of variation in programs of refinance companies, many potential refinance clients are eligible now. You can get help of a home loan expert. You never know, you may be successful next time!

5.       People think that credit history is not strong enough to buy a home

Though a solid credit report and credit score contribute to a good interest rate for your mortgage, it doesn’t mean that you cannot obtain a home loan if you have a blemished credit score. In fact, there are some programs available from refinance companies for people with poor credit scores to enable them to obtain their dream home. You can discuss with your mortgage lender about your credit score and different ways of raising and secure your dreams.

Hope these tips would have cleared most of your misconceptions on mortgage rates.

Author: George Brown