INVESTING IN YOUR HOME BY REFINANCING

Before you commit, here are some things for you to consider in choosing the mortgage product or home that is right for you.

Interested in Improving Your Home? Would you like to fix up your home? Have you found a house that's "almost" perfect but needs a better kitchen or new bathroom?

Decide what home improvements you want to make. Take into account how much value the renovations may add to your home. You will then need to balance your wish list of home improvements with what you can afford. Types of home improvements include:

• Major renovations: Adding or upgrading bathrooms, kitchens or other additions.
• Repair work: Roof repairs, termite damage repair.
• Cosmetic renovations: Interior and exterior painting, carpeting, floor refinishing.
• Improvements that save energy: Installation of energy- efficient heating, cooling, electrical, or plumbing systems, and related energy-saving appliances.

Ways to Fund your Home Improvements with your Home Loan

• Consider refinancing your current mortgage. You can obtain a new first mortgage and also include funds for renovations. Find information about refinancing below.
• Think about including funds for renovation in your mortgage for a new home purchase.
• Some people take out home improvement loans or home equity loans to cover the cost of improvements.

Need Help Finding Names of Contractors?
The National Association of Home Builders (NAHB) www.nahb.com, and the National Association of the Remodeling Industry (NARI) www.nari.org, can help. Both groups offer information to help you understand how to choose a contractor, and they have affiliated local associations nationwide that can be contacted for the names of their members who offer home improvement services and information.

When does it Make Sense to Refinance?
If you are thinking about refinancing your current home loan, you should consider the following as you determine the best type of mortgage, rates and terms for your situation.

• your reasons for refinancing
• the interest rate of the existing mortgage
• the interest rate of the new mortgage
• the cost of refinancing
• how much equity you have built up in your home
• how long you plan to stay in your home
• your current income and credit status

To be eligible to refinance, lenders usually require that you have at least 10 percent equity accumulated in your property.

Refinancing may make sense if you want to:

• get a lower interest rate mortgage to reduce your monthly payment
• borrow additional funds for home improvements, education bills or other needs -- often referred to as a "cash-out" refinance
• switch from an adjustable-rate loan to a fixed-rate loan -- this may make sense if interest rates have fallen since you took out your adjustable-rate loan so you can know exactly what your mortgage payment will be for the life of the loan

Refinancing Fees and Costs
Understand the costs and fees you'll have to pay and how long it would take you to recover those costs. Work with a lender to know the true cost of the mortgage over the term you intend to hold the new loan. Typical refinance fees include:

• application fee
• credit report fee
• title search and insurance fee
• loan origination fee and points

GETTING STARTED
If you would like to begin the application process, complete our online application
or learn more about our current rates with today's rate sheet.

If you have questions or would like to speak with me, please give
me a call at 888.691.0151 or drop me an email at dave@lenderdave.com.