The Accunet Mortgage Show (2/23/20 Episode)

Brian and his son-in-law Tim talk refinancing; when and how to refinance and get the most cash back and peace of mind.

This week’s highlights:

  • Rates remain at an all-time low
  • The housing market is volatile; take advantage of the rates while you can. Now is the time to refinance your home!
  • There are two hard-and-fast approaches to refinance, and several exceptions that can help you save on your monthly payments. 

Ready to take advantage of low rates? Contact Accunet today to get started.

Why should you refinance your home in 2020?

Rates remain at record lows, meaning homeowners are facing a serious opportunity to save; Lower rates equal lower monthly payments.

If you’re worried about incurring additional costs on a refinance, don’t be. If you have enough equity, Accunet can help you roll in the interest accumulated on your old mortgage and combine it with your new loan.

Brian also notes that mortgage interest is paid in a state of arrears. For example, a May 1st payment accounts for April’s accumulated interest. So, the previous month is collected at closing, but Accunet can help you roll that into your loan so it equates to what you’ll actually be paying each month.

Getting approved for a home refinance has never been easier — with Accunet, you can get instant pre-approval and rate-lock option online.

It takes 8 minutes or less; we’ll run your credit report, and show credit-verified loan options for any number of mortgage terms, so you can start the refinance process today!

The 2 “flavors” of refinance

Are you ready to refinance? Brian presents two options for a refinance plan:

Option #1: A “rate-and-term,” where you pay off your existing mortgage.

Option #2: A “cash-out” refinance,  where Accunet can and help you get the most bang for your buck despite Fannie Mae and Freddie Mac’s potentially higher default rate.

Exceptions to the refinance rule

Tim explains there are a few exceptions to the rules of refinancing:

Exception #1: A “piggyback mortgage,” where a homeowner takes out a 1st and 2nd mortgage simultaneously towards buying the property.
(Tim had a 1st time home buyer who went through WHEDA to do this, which afforded them 0% down by lending a 1st mortgage at 97% of their purchase price, and a small second mortgage at an additional 3%, serving as the down payment.)

Exception #2: If you’re paying off your first mortgage, you are able to combine it with student loan debt to roll in savings.

Exception #3: You are able to take cash out if you are paying off an ex-spouse as part of a marriage settlement agreement. An unfortunate scenario, but Accunet can help save you money if you are going through a divorce.

Accunet seeks opportunities to help clients save money. The purchase market is looking up, and Brian and Tim are noticing lots of people getting accepted offers — but this doesn’t guarantee the low rates will hold!

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