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Saturday, September 1, 2012

Now is the Time to Refinance or Buy a New House

When we bought our house, some years back mortgage rates had gone up significantly. In fact, the rates a month before and a month after we bought our house were varied by more than one and a half points. Anyhow, our interest rate ended up at high of 6.25% for a 30-year fixed. I’ll admit it was quite good then. Now, it is not so great.
Now is the perfect time to buy a house or refinance. Following the housing bubble burst, housing prices have considerably dropped. And now that the mortgage rates have also went down, anybody in the market looking for a new house is very lucky. Wherever you go all you see is foreclosures and houses-for-sale and there are pretty good chances that you will get one at a golden deal. So, if you have decided to buy a new house or refinance here are a few quick tips to consider:
Be familiar with your FICO score:
I think it will be much easier to remember this; your FICO = the rate you able to get. Right now, even if your FICO score is below 650, your chances of getting a rate as low as 5.5% are high.
Fix any Errors In Your Credit Report:
When looking at your credit report, don’t be confined only to your score. Read the whole report carefully. If you notice any errors, glitches or mistakes, be sure to have them straightened out straight away so that they don’t diminish your chances of getting approved for a low interest rate loan.
Know Your Lender:
As I always advice, invest your time before you invest your money. Do your homework on your lender and make sure you are not paying more than necessary in fees, points and or origination cost.
Thoroughly inspect the house
Before you buy a house, make an effort to carry out your own independent thorough inspection. This will enable you understand what you are spending you hard earned cash on. If you are refinancing, it is good time to check and determine what your house is worth. Has it depreciated? Has it appreciated? How much?

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