Years ago there wasn't enough information available for the average consumer to fully comprehend the inner workings of this industry. Today - there is too much information available and it can be overwhelming.
Our current mortgage crisis is due largely in part to consumers not reading the fine print of the mortgage documentation and of predatory lenders who took advantage of the uneducated consumer.
With today's low interest rates how can one not embrace a refinancing even if it requires an investment in your time? Not taking action now can be too costly and you will kick yourself down the line. I'm the first to admit - I'm not a numbers person but I have surrounded myself with trusted advisors who can do just that - advise me as to the validity of my own decision.
Here's my strategy:
- Take an active role in your mortgage. Read everything you can about mortgages and personal finance prior to applying.
- Start making calls to find out missing information
- Get your credit score. If the number will get you scolded by the likes of Suzie then do what you can to improve that number. When it comes to your credit score, the higher the number the better.
- Try to stick to the same loan company - they already have your information and this can greatly speed up the process
- Review the re-finance offer with your financial planner. Although tools are available to plan our financial future for ourselves, many of us don't have the discipline to do so. Do yourself a favor and forgo spending on one major item this year and sign up with a Financial consultant who can guide you through these types of critical decisions.
The bottom line is the thousands of dollars you will save in interest over the long term. Take a long hard look at that number - all those zero's and comma's. Sweet!
