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Dallas Mortgage Refinance |
Refinanced mortgages have a few distinctive
rules when it comes to closing. For one, there is a mandatory
rescission clause for primary residence mortgages that permits you
to annul your loan. You can decide to close at anytime, which is
advantageous if you think rates will go down in the near future.
If the property is your primary residence you have three days after
closing to cancel your loan with a rescission clause. Consider it a
re-evaluation period. If you have cold feet, you can annul the loan
and recoup almost all fees.
If you annul your
mortgage, you will barely have a short term hit on your credit score
from the lenders background check. However, it will have an effect
if you make a decision to apply for a new loan in the near future.
You have the option to keep you refinanced mortgage open
indefinitely. You don't have to close your refinanced mortgage
within 30 days. On the other hand, you have to consider your
alternatives cautiously. As you are waiting for rates to drop, you
may observe them increase while paying your existing high mortgage
rate.
Mortgage rates vary on an approximately hourly
rate, but they do follow a trend. You can learn about general
mortgage rates in finance section of your newspaper or hear about it
on radio and television. Whether the Federal Reserve Board increases
or lower rates ultimately impacts mortgage rates, but other factors
also influence mortgage rates, making it complicated to foretell
precise changes.
You also have to bear in mind that
each month you put off locking in rates, you are losing a
possibility to save money. While a percent can save you a
substantial sum of money, a quarter percent isn't worth it. Waiting
for lower rates is a risk, but it is a risk that you have a right
to.
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