With so much instability in the economy it can seem daunting to
invest any marketing funds in the mortgage industry. Yet mortgage leads
are closing at high rates and getting huge return on investment for our
clients. So how is this possible? The thought process of the consumer
considering buying a new home is to do so now. There are plenty of
underpriced houses on the market. The current mortgage rates are
historically low making this a very good opportunity to get a mortgage
loan. The economy being strained is not entirely negative, it provides
you a great chance to borrow money or refinance your current mortgage
loan at a very advantageous rate.
After the housing market crashed
many people believe that the lenders have made it almost impossible to
obtain mortgage loans, but this is not the whole story. In fact, there
are still many lenders, such as credit unions, that are very stable
financially. They are still trying to lend money to people who are
looking for mortgage loans.
There are many things that lenders
look for in mortgage loan borrowers before they issue a loan. One
important factor is proof of sufficient income such as tax return
documents. Employment stability is important in case of unexpected
layoff. A good credit score to make sure that you pay your bills on time
will also be required. The amount of assets you have is another factor
that will be taken into consideration. If they think you fulfill their
requirements for these criteria it should not be a problem to obtain a
loan with a good mortgage rate.
If you already have a mortgage
loan, refinancing it could save you a lot of money thanks to the current
rates. The reasons for refinancing could be many, including adjusting
the term of your mortgage loan, adjusting the type of the mortgage, and
to take cash out. But the most important reason might be to refinance to
save money on interest.
It is generally said that it is a good
idea to refinance if you can get an interest rate that is 2% lower than
your current rate. The interest savings of 2% will cover for refinancing
costs unless you plan on moving very soon. At this point in time there
is a huge number of people with mortgage loans that have interest rates
that could be lowered by much more than 2%. To not take advantage of the
current rates would be a big mistake.
With Christmas getting
closer, families want the best gift possible by taking the opportunity
to get a new mortgage loan or refinance while the rates still are low.
There are many other things that are more fun to spend money on than
unnecessarily high mortgage rates.
