Tag: credit score

Top 10 Refinance Mortgage Tips for Saving Money

Written by Altitude Home Loans on December 30, 2024. Posted in Mortgage.

If you need an influx of cash, consider refinancing your home. Altitude Home Loans gives you refinance mortgage tips so you can obtain the maximum benefits. When you’re looking for an Arizona refinance mortgage, don’t forget these 10 tips.

1. Optimize Your Credit

Your lender heavily considers your credit score when offering you a new loan. In general, the higher your score, the lower your interest rates. Consider what steps you can take to improve your score before starting mortgage refinancing.

2. Approach Finances Holistically

The equity in your home and your mortgage payments provide a snapshot of your overall financial well-being. Before refinancing, know how much room you have in your budget and consider your debt-to-income ratio. Your finances help your lender decide what terms you’ll receive on your new loan.

3. Gather All Your Documents

One refinance mortgage tip homeowners often overlook includes gathering all the documents they need such as:

Bank statements
Pay stubs, W-2s, or income verification
Down payment source verification (when applicable)
Alimony transactions (where it applies)
Tax returns for self-employed individuals

4. Compare Rates

Shopping for a mortgage refinance isn’t much different than seeking other goods and services. Obtain quotes from at least three different lenders. Don’t focus solely on the monthly payments: also consider interest rates, duration of the loan, and other benefits like whether you’ll pay closing costs.

5. Consider Other Options

Refinancing your home may not offer the best solution for obtaining the money you need. For example, you can usually achieve better rates on financing a new car than on a mortgage. When able, focus on long-term savings rather than short-term gains.

6. Confirm It Benefits You

Depending on your equity, you can lose money on a refinance. When you factor in things like closing costs and appraising your home, refinancing may not benefit you. Trustworthy mortgage companies should tell you when it’s not a good option.

7. Assess Your Property Value

Most lenders require you to assess your property before refinancing. Invest in a reliable assessor so you gain an accurate property value. Don’t cut corners on this step.

8. Negotiate with Lenders

Many people don’t realize they can negotiate with mortgage lenders. Do you like the interest rates from one lender and the loan terms offered by another? Some lenders will match their competitor’s offers to gain your business.

9. Wait for Lower Rates

If you don’t need the money immediately, consider waiting to refinance during a period of lower interest rates. How can you predict when interest rates will decrease? Ask a financial advisor for reliable predictions.

10. Enlist Expert Help

Don’t shop for a new mortgage alone. Enlist the help of your accountant, real estate agent, and mortgage lender, so you have all the information you need. Find the best experts by looking at their reputations and asking for referrals.

Consult the Mortgage Experts Today

When you follow our refinance mortgage tips, you can better secure your financial future. At Altitude Home Loans, we help you understand what refinance mortgage documents are and work hard to find you the best terms. To start the process, call (520) 500-1010.

When Should You Refinance Your House Mortgage?

Written by Altitude Home Loans on September 30, 2024. Posted in General.

Is the time ripe to refinance a house mortgage? It could become your ticket to financial ease!

As the go-to mortgage lenders in Tucson, AZ, we at Altitude Home Loans know a thing or two about the subject. Keep reading as we dive into the nitty-gritty details.

Do It for the Right Reasons

Too many people reassess their mortgages without fully understanding their goals. Some of the best motivations to take the plunge include the following.

Lowering Interest Rates

Does the current market favor borrowers? If you locked in a mortgage at a higher interest rate several years ago, you might want to consider a rate-and-term refinance. You should ideally obtain a rate at least one-half of a percentage point lower than your existing plan.

Check your credit score and report before applying! You’re in a good spot when both have improved since your last mortgage. The best refinance rates go to people with the 740 score and above club.

Removing Private Mortgage Insurance (PMI)

PMI is extra insurance when your down payment dips under 20%. It protects lenders, not you, and adds to your monthly bill.

Refinance your house mortgage to eliminate this costly extra with enough home equity. The savings will roll back into your pocket instead of the lender’s.

Financing Big Purchases

Do you need to cover upcoming expenses? We’re talking about wiping out those credit card bills or avoiding student loans’ hefty interest!

Conduct a cash-out refinance and liquidate your home’s equity. People also use the funds to purchase property or renovate their homes.

Changing the Loan Structure or Term

You might want to speed up your mortgage payoff. Shortening a loan term can save you loads on interest over time. You can also switch from an adjustable rate to a fixed rate for more predictability in your budget.

Both strategies bring peace of mind and financial stability. Talk to your lender, assess the current rates, and see which option best fits your goals.

Know When To Reconsider This Route

Should you refinance? It’s not always the best move for everyone. You generally want to avoid:

Discretionary purchases: Some fall into the trap of risking their home to finance luxury items like high-end vacations, extravagant cars, or other non-essential expenses.
Changing loans halfway through the term: You probably won’t save on refinancing when you’re too far along in your mortgage. It means reaching a point where the bulk of the payment goes to the principal balance rather than interest.
Selling too soon: If you need to put your property on the market in the next few months, you probably won’t have enough time to recover the refinancing costs.

Is Refinancing Worth It?

Take the time to analyze the situation by calculating the potential return, as well as accounting for closing costs and loan-to-value ratio. Altitude Home Loans always has you covered if you need assistance.

Dial 520-500-1010 to refinance your house mortgage — just have the required documents and we handle the rest! Give us a call today.

Can You Skip a Mortgage Payment?

Written by Altitude Home Loans on May 30, 2024. Posted in Mortgage.

When struggling to pay your bills and make ends meet, finding ways to cut expenses may require sacrifice and creativity. In dire circumstances, you might wonder, “Can you skip a mortgage payment?”

While it’s certainly possible to miss a mortgage payment and keep your home, not making the monthly payment can have significant consequences for your financial future. Here, the experts at Altitude Home Loans, the top mortgage lenders in Tucson, AZ, explain what can happen. You can get more insights by calling 520-500-1010.

What Happens When You Don’t Make a Mortgage Payment

First things first: Missing a single mortgage payment will not trigger foreclosure proceedings. Most lenders will not even consider foreclosure until borrowers miss two payments or are 90 days or more in arrears.

However, that doesn’t mean you can decide not to pay your home loan and expect everything to be fine. Missing just one payment can:

Affect your credit score. Most lenders report payments more than 30 days late, causing a drop in your score of up to 100 points or more.
Trigger late fees. Most lenders will charge a late fee for any payment received past the due date.
Make next month more expensive. Even when you don’t pay on time, you still have an obligation to make the payment. The mortgage company will expect you to pay the past due amount and your current payment the following month.

I Can’t Make My Payment This Month — Now What?

As soon as you realize you cannot make your monthly mortgage payment, get in touch with the lender to discuss the situation. You may be able to work out a payment agreement or other solution to prevent excess fees, damage to your credit, or foreclosure. If the issue is temporary and due to something like an emergency that drained your available funds, and you have a good track record of making payments, you should be able to arrange a workable solution.

If you find yourself asking, “Can you skip a mortgage payment?” more frequently and struggle to pay every month, you may need a more permanent solution.

Mortgage relief options to consider include the following:

Mortgage modification, which changes the loan terms to extend the life of the loan, switch from an adjustable to a fixed rate, or lower the interest rate.
Mortgage refinancing, in which you get a new mortgage at a lower interest rate to pay off the existing loan, reducing your mortgage payments every month.
Forbearance, which allows qualified buyers to reduce or suspend their payments temporarily.

If none of these options work, and your financial situation doesn’t allow you to make payments comfortably, it may be best to sell your home and find something more affordable.

Get Help From Altitude Home Loans

Choosing a local mortgage lender like Altitude Home Loans in Tucson, AZ, means you have someone close to home you can talk to when you’re having trouble with your mortgage. If you need to know “Can you skip a mortgage payment?” or are having trouble paying your loan, call 520-500-1010 for help.