Chicago Refinance Resource

Chicago Refinance was created to share you insight to aid you no matter whether you want to buy a your first home, or if you’re already a home owner and are just searching for assistance with your Chicago refinance. We really hope you’ll find the information here helpful in your efforts.

Currently, mortgage interest rates are at their lowest in years. The question is, how can you get the best deal?

Everyone has been asking how to secure these low, low mortgage rates. The thing is, most people aren’t even able to get through to their existing lender when they try to call. They’re pretty frustrated.

Believe it or not, it could take as long as 3 months for the mortgage market to be back to working normally, according to what one expert at Fannie Mae believes. He expects mortgage interest rates to remain in the low 4′s to mid 5 percent range for the year.The main message here is to not panic. It will take some time to get a mortgage done, but that shouldn’t be a problem.

Some things to remember

1. Recognize what a unique opportunity this is

There are no 2 ways about it – this is a great opportunity. 30-year fixed mortgage rates are at 4.6%. From a historical perspective, rates are normally about 8%.. That is a significant difference!

Let us have a closer look at it. Let’s first consider a 4.6% rate on a 30 year fixed home mortgage. If you were to borrow $170,300 on a 30 yr fixed loan (this is about average for a home loan across the US) with a 5% mortgage, your monthly payment would be right around $915.And at 8% you would pay $1,250. What’s the difference? Three hundred thirty five dollars per month; that’s about $4000 a year.

2. Be cautious

We’ve told you it might take longer to get a refinance now. That’s just something you’re going to need to accept.And according to bankrate.com, Fannie Mae and Freddie Mac have increased their fees.

So you could be paying extra fees of 1% or 2% of the loan amount, possibly even more than that in addition to all the closing costs normally accounted for.

3. Find the best rates

Today, one of the biggest issues for people is having enough equity in their home.Today you’ll need 20% or more in equity to qualify for the best rates.

Another thing you’ll want to do is make sure your credit score remains as high as possible. Make sure you have a look at a copy of your credit report to be certain there aren’t any mistakes on it. You can get a copy of it for free at annualcreditreport.com.

Talk to multiple lenders to be sure you’re getting the very best rate you can. Put all your paper work in order beforehand. The following is a basic list of the documents you’ll need:

A complete application, your tax returns from the most recent two years, pay stubs for the past month, 3 months of bank statements (checking, savings, mutual funds), your most recent mortgage statement and a copy of the deed.

Consider doing the things outlined above as you prepare for your Chicago refinance or purchase loan, and you will most likely be in excellent shape as possible to get what you’re looking for.