There are many benefits of refinancing your KC home loan, from lowering your monthly payment to getting a fixed mortgage rate. Up until recently, many Kansas City homeowners assumed refinancing their home loan was a step everyone could eventually take. Unfortunately, the last decade’s tumultuous housing market has given homeowners tighter restrictions on refinancing, including their:
To refinance your KC home loan, you shouldn’t be in default. While there is the odd lender who will refinance defaulted loans, this situation is rare. Defaulting on your loan makes you less trustworthy as a borrower because you’ve shown you are unable to make payments on time. In the months leading up to your refinance, be sure to stay extra diligent in your loan paying habits.
Many loan programs require a healthy debt-to-income ratio in order to refinance. If you don’t meet certain income requirements, you may not be eligible for a loan at all. As a result, it’s a good idea to refinance your home before you retire to ensure you can pay a second loan.
There’s a reason you aren’t able to refinance your KC home loan a year after purchasing it. You have to build up a substantial amount of home equity before you can refinance. In general, mortgage companies require a higher amount of home equity than the amount you want to borrow through refinancing.
In addition to the condition of your loan, your income, and your home equity, you must also have enough expendable income to cover closing costs. Refinancing your KC home loan follows the same general steps as acquiring the original loan. Therefore, there are still costs to consider during closing, such as:
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
