By your 40s, you have probably hit your financial stride and maybe in a home that you’ll be keeping for some time. You’ve established long-dated credit, have probably accumulated some assets, and are likely in your peak earning years. At the same time, you should be seriously planning and funding your retirement, may have college expenses for your children (or will soon), and may feel stressed trying to handle expanding financial obligations. What you should do with your mortgage (if anything) will depend on both the past and the future.
Most people have heard the saying that it might be a good idea to refinance if mortgage rates drop. For those who might not know, refinancing is essentially taking out a new loan to replace the old one because the new loan has a lower interest rate.
This could shorten the time span of a long time and reduce monthly payments, or save money on the total cost of the home. At the same time, refinancing is not right for everyone. How can homeowners determine if refinancing is right for them?
It seems like everything is getting jumbo sized these days. Jumbo sized soft drinks. Jumbo sized fast food meals. Jumbo sized smartphones. But one thing that nobody thought would get jumbo sized? Is mortgages.
So what exactly is a jumbo mortgage? How is it different from a standard mortgage, and what does that mean for your refinancing options? Here’s what you need to know.
If you run your own business (25% or more), are a gig worker or independent contractor — and you want to refinance, it could be more challenging for you to secure financing. It can be harder to prove how much income you have without a steady paycheck or W-2. That’s why most lenders have stricter rules for self-employed borrowers.
In the mortgage industry or personal finance industry, “experts” like to overcomplicate the process — with insider terms, graphs, charts, and complicated products and services. In the end, it is a hype machine to make things out to be more than what they are.