4 Common Misconceptions About Mortgage Refinance

April 8, 2021 by Mitch Stam

Did you notice that more people are refinancing their mortgages lately? This is due to the significant drops in mortgage rates over the past few months. Therefore, it’s a great time to get an excellent rate. Before you do, we will debunk some common misconceptions about mortgage refinancing first to ensure you’re on the right path.

Common Misconceptions About Mortgage Refinance

You Need to Reset Your Loan. Some people hesitate to refinance their mortgage because they’re afraid it would reset the clock on their loan. However, it doesn’t work like that. You would only pick up where you left off with a lower rate.
Your Home’s Equity Will Be Affected. Some people believe that refinancing their mortgage means they will lose the equity they’ve built over time. The only way that could happen is if you do a cash-out refinance wherein you borrow more than your existing mortgage balance. On the other hand, if you only choose to refinance your existing balance without adding to it, it won’t affect your equity.
You Need to Wait a Year to Refinance Again. If you recently had a mortgage refinance, you might think you can’t swap out your loan again. Generally, you can refinance as long as it’s been six months since you last did so. Keep in mind: you will need to pay for closing costs every time you refinance, which is why it’s not the most brilliant move. But, if you have a pressing reason to refinance again after six months, then go for it.
You Get Non-Negotiable Closing Costs. Refinancing your mortgage isn’t all about the good stuff. Its downside is you need to deal with closing costs to get the new loan. The good thing about this is that you can bring those costs down. Therefore, it’s not true you get non-negotiable closing costs with mortgage refinance because you can do something about it. To work on your closing costs, it’s important to work with a mortgage specialist to help you on ways how you can lower down the closing costs.

Save More Money on Your Mortgage

Now that we have debunked these common mortgage refinance myths, why don’t you take a step to lower your mortgage today. Make sure you get the right information about it, though, especially if you’re on the fence about it.

Shopping around with several lenders is a great way to know which refinance plans you qualify for. By refinancing your home, you can get a lot of savings, especially at today’s rates.

Refinancing in Phoenix With Desert Springs Mortgage

Due to the popularity of mortgage refinancing these days, it’s no surprise that misconceptions also resurface, which causes hesitancy among many homeowners today. That is why it’s essential to keep yourself informed with the right details to make the best decision for your mortgage.

Take advantage of the great mortgage rates today and refinance now. If you don’t, you could lose substantial savings. Make sure you speak with a professional to help you through this process. After all, mortgage refinance involves a lot of technical details that could be difficult to wrap your head around.

Do you need help with your Phoenix home loan? Desert Springs Mortgage is a full-service mortgage brokerage focusing on the purchase market through realtor partnerships and outstanding customer service. Contact us today at (623) 432-1309.

Home Buying Myths Millennials Should Be Wary Of

March 25, 2021 by Mitch Stam

Many millennials are now at the age where they are earning enough to afford numerous investments, one of which is purchasing a home. However, for young first-time buyers, navigating the world of real estate can turn out to be a bumpier ride than expected. They may not know what to believe, especially conflicting bits of advice here and there. Finding a trustworthy agent and a qualified mortgage broker in Phoenix is important but being familiar with the home buying myths before embarking on the home buying process can save you a lot of trouble down the road.

Homebuying Myths

Myth 1: Lenders Dictate How Much You’re Allowed to Spend. This is true to an extent. Lenders will tell you explicitly how much money they can grant for the loan based on the scoring system that considers your credit history, income, assets, debt, and how much the home appraises for. However, the decision on how you should spend that money is up to you, so it’s essential to consider all expenses. The last thing you want is to spend your money on a dream home, only to be left with nothing for repairs and maintenance.
Myth 2: Agents Can Do Inspections Alone. While your agent certainly can, it doesn’t mean that they should. Professional home inspections give potential homeowners the opportunity to learn about the house’s inner workings, including its mechanical systems and estimated longevity. Insist on a written report after the inspection, whether you’re exploring a new or lived-in home. Attending all of them is the only way to really see if you’re getting what you pay for.
Myth 3: It’s Easy to Figure Out the Final Cost of the New Home. This is considered a myth. Most first-time buyers tend to underestimate how much maintenance and repairs cost, particularly for single-family homes. This includes all the little details, like your upholstery and furnishings. A survey showed that buyers of new homes ended up spending around $10,000 on average on top of their final home’s cost. You should also anticipate the costs of lawn care, snow removal, driveway care, and others. Take note of the appliances, systems, and parts of your home you’ll be maintaining and replacing and factor all of this in the final cost before taking out that home loan.
Myth 4: There’s No Need to Be Present for the Final Walk-Through. This is false as you need to make sure that the house is in the same condition as you last saw it. Final walk-throughs are also your chance to ensure that what the seller agreed to leave behind has been left. Don’t close unless you’ve attended the final walk-through yourself.
Myth 5: The Home You Buy This Year Is Worth More Next Year. This is a myth as you can never be 100% certain with home valuations. You can follow predictions but remember that home prices are never set in stone because there’s no telling what might happen in the near future and beyond. A perfect example of this is the past year’s market prices which drastically changed due to the COVID-19 pandemic. It’s also worth remembering the financial and housing market crash of 2008. With a trusted mortgage company, you can make better predictions and decisions on home prices and how much they’ll be worth in the next year.

Home Buying in Phoenix With Desert Springs Mortgage

Mitch Stam of Desert Springs Mortgage shared this, “Going through the process of buying your first home can be confusing, to say the least. Familiarizing yourself with these myths and consulting with your mortgage company can allow you to make better decisions about when to buy a home, the expenses you can expect, and all other factors to consider.”

Being a millennial homebuyer doesn’t have to be the daunting task that it seems to be as long as you’re well-equipped with the right professionals who can separate facts from myths.

Desert Springs Mortgage is a full-service mortgage brokerage that provides clients with a wide range of professionals through realtor partnerships and excellent customer service. For mortgages in Phoenix, FHA loans, VA loans, asset-based lending, commercial lending, reverse mortgages, and other financing options, call the team at (623) 432-1309!

3 Things You Must Do to Maximize your Mortgage Refinancing

March 8, 2021 by Mitch Stam

For many homeowners paying off their mortgage, the decision to remortgage can be a little more complicated than they would imagine. Many assume that simply because interest rates drop, they should refinance. However, this is not always a good idea. There are many other factors to account for when deciding to refinance or not. After all, you must experience maximum benefits as a homeowner.

Mortgage Refinance in Phoenix, AZ

If you are wondering whether or not you should refinance, here are the things you must do to ensure the best benefits:

Set your refinancing goal. The first and most important thing to do before deciding even to refinance is to set a refinancing goal. This goal can vary from individual to individual and can be anything from lowering the monthly repayments to simply saving money. These goals will affect the refinancing solution you end up with. For example, if your goal was to lower monthly payments, you may opt for something that does not necessarily help you save money. Such a refinancing solution can be a mortgage that extends the payment you are making now while also increasing either maintaining or increasing interest rates. Effectively, what it does is lower the amount you pay monthly at the sacrifice of fewer savings. Again, your decision must be based on a specific goal, and not just because the “rates are lower.”
Outline the cost of refinancing. Remember, refinancing still costs money. Fees and payments are still involved in the process, which, in some cases, can cost you a hefty amount. While you may not have to pay some of these fees upfront, you will eventually pay for them. When looking at any refinancing option, you must pay attention to the cost. While a deal may offer an incredibly low rate, it may be compensated with high costs to cover fees and such. To ensure that you get the best deal, proceed carefully. Ask for an estimate to fully understand what you are getting into. You should also try to figure out your break-even point. The break-even point is the point where you realize savings after paying off the cost, which is crucial to help you know whether or not the refinancing solution is worth your time.
Shop around for the best deals. Keep in mind that you should not go for the first deal you run into. You never know if there are better deals out there with better break-even points, lower monthly payments, higher long-term savings, and so on. For that reason, always do your research and hunt for the best deals. You should pay attention to the lenders themselves; make sure to work with reputable and trustworthy individuals and institutions only. An excellent way to do this is to work with a mortgage firm or professional to help connect you to trustworthy sources that you can rely on for a good deal.

Refinancing in Phoenix with Desert Springs Mortgage LLC

In summary, do not ever base your refinancing decision on rates alone. Consider all of the above factors and put them into play when deciding whether refinancing is worth your time and money. That way, you can maximize your ability to achieve your goals. Whatever that may be, whether it be to lower monthly repayments or better savings, you will stand a much higher chance of succeeding.

Desert Springs Mortgage LLC is a full-service mortgage brokerage in Phoenix offering conventional loans, hard money loans, and various other financing solutions to satisfy your needs. Get your mortgage refinance with us today and call us at (623) 432-1309 to achieve your financial objectives!