When you’re trying to improve your financial position, procrastination isn’t helpful. When it comes to refinancing, there are many reasons that people delay taking action. Here are some of the reasons people procrastinate:
- Don’t want the hassle
- Don’t think they will qualify
- Someone told them they have to drop their interest rate one point to make it worthwhile (this is not true)
- Think rates are going lower
- Think the house might not appraise for necessary value
- Haven’t filed their latest tax return
- Think credit issues prevent it
- Plan to sell the property soon
- Don’t understand the numbers or paperwork
Certainly there can be good reasons for waiting, however, the point is not to wait unnecessarily: at least have the conversation with your mortgage consultant in order to see what can be done now or what needs to be done in order to prepare for refinancing if it makes sense. And if it makes sense to do something now, then don’t wait. Why?
Here are some things that could happen when you procrastinate:
- Never get around to dealing with it
- Interest rates go up
- Appraised value goes down
- Property is damaged
- Unexpected credit issues, whether real, fraudulent or erroneous
- Loan program requirements become stricter
- Loan program is discontinued
- Loan program costs become more expensive
- Mortgage insurance costs become more expensive
- Divorce
- Loss of employment or income source
- Change of employment affecting qualifying status
Don’t miss the opportunity to save money if you can. Why let the bank keep your hard-earned money? All it takes is a quick phone call. Fifteen minutes or less could save you a lot (apologies to GEICO).
Author bio: Michael Frank is a senior loan officer (NMLS #157300) with American United Mortgage Corp. (NMLS #157118) and is a licensed mortgage loan originator in Georgia, Florida, Tennessee, Colorado, Maryland and Virginia. He has over ten years of experience in originating conforming, government and jumbo loans.
Prior to entering the mortgage business, Michael was president and vice president of a small business for eleven years and spent six years in the commercial and investment banking businesses. He has a B.B.A. from Emory University and an M.B.A. from Columbia University and has lived in the Atlanta area for nearly thirty years. He can be reached at 770-518-2438 extension 1194 or via email at mfrank@americanunitedmtg.com .
