TYLER, TX (KLTV) - President Obama is now urging nearly 9-million American homeowners to take advantage of record low mortgage rates.
"Right now, with rates kind of moving, timing is real important," said Margie Fisher, who's lending office would normally be closed on Good Friday, but now, she's juggling calls and catching up on paperwork."
"If you have only been in your home a year to two years, and maybe you paid a 7.5 percent rate a couple years ago," said Fisher. "If you've got an adjustable rate, or a balloon...man, those are the people...I' ld be beating the door down to refinance."
Right now, mortgage rates are near four and a quarter percent, but first, you have to contact your lender.
"You want to have everything in place where you want it to be, so that when that rate is where you want it to be, you can just pull the trigger and tell your lender to lock," said Fisher.
Next, gather up all the paper work from your original closing: your deed, title and insurance information.
"The more documentation that you can give to your loan officer, the easier the process is going to be, and the faster it will go," she said.
You may also have to provide income statements, check stubs, and tax returns.
"At that time, we'll pull credit, and then do a comparison," she explained. "This is what your payment, now, is, and with your closing costs, this is what it's going to be."
The loan application should be filled out and filed by this time.
"Once that approval is in, we coordinate with the title company and the buyer goes to the closing table."
Usually they end up with a lower payment.
"Even if you only save $80 a month, if you spread that over 30 years, your saving literally, thousands and thousands of dollars," she said.
Who wouldn't appreciate having that in their pocket?
Our lender gave us one more benefit. If you can afford to make the same payments you made before refinancing, you can literally cut five to 10 years of payments off a typical 30 year loan. Always work with a reputable lender, and never work with anyone who asks for money up front before helping you refinance.