Planning to refinance your mortgage?

A rush to refinance mortgages in light of the super low mortgage rates is facing a logjam of applications. According to Katy Mclaughlin writing for The Wall Street Journal, you need to take these steps:

1. Unfreeze your credit. Many people froze their credit to protect against fraud. Now is the time to thaw your credit history. Freezes and un-freezing are now free. You should be able to unfreeze your account online but plan ahead in the event that you need to send documentation to a credit bureau to prove your identity.

2. Get Appraisal Ready. If planning any home improvements complete them before the appraisal or hold off until afterwards. "Purge clutter and spiff up the home as much as possible."

3. Call your Accountant. if self-employed... you may need a year to date profit and loss statement from a CPA. This can be time consuming during tax season when CPAs are very busy (despite the recent roll back of filing to July 15). Request digital files of of your last two years of business and personal federal tax returns.

4. Examine Trust Documents. IF the title of the  home is held in a trust, some lenders need a full copy of the trust while others need only specific pages. It helps to have a digital copy. Review the document to be sure there are no typos, especially in name spellings. If there are you need to have the pages redrafted by the trust attorney and notarized.

5. Go on a Credit Diet. DO NOT open any new credit accounts during the mortgage process. Doing so will slow down the process.

Remember to freeze your credit after the process is complete.
Expect delays as the volume of applications swells and coronoa virus slows the process.

Should You Refinance Near Retirement?

"Mortgage rates are near historical lows. But should you refinance if you are near retirement? It might be worth your while to crunch the numbers. If some or all of these apply to you, then refinancing might save you some money in the long run."

• “You are paying at least 1 percent more than the current rate.
• You plan to stay in your current home after retirement.
• You have at least 20 percent equity in your home, which will make it easier to refinance and get the best rate.
• You have good credit and can get the best rate.
• You have an adjustable rate mortgage.
• Your bank is offering a low or no cost refinancing option."

Read the details in USNWR Money by Joe Udo

http://money.usnews.com/money/blogs/On-Retirement/2012/09/07/should-you-refinance-near-retirement