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Should You Refinance Your Mortgage? an Interview with Justin Venhousen of Compass Mortgage

By Justin Vanhousen

Please describe the background of your company and some of your qualifications.

Mortgages are our only business. We can guarantee that meeting all of your mortgage needs is our top priority. At Compass Mortgage our strongest desire and greatest passion is to help our clients make wise and informed choices with regards to mortgage financing. Our experienced staff is always available to answer any questions you may have. Because we underwrite, prepare the closing package, and provide funding for your loan, we are able to provide a quicker, smoother loan process and closing. Since we provide the funds and complete mortgage services for our diversified loan sources, we are able to offer you more competitive rates and products.

How much equity does one need before considering refinancing?

Most of the time people are refinancing to either (1) get out of mortgage insurance (2) to get a lower interest rate or (3) to get cash out of their home. The amount of equity needed is different for each one of these scenarios. To avoid mortgage insurance you'll need 20% equity in your home.

If credit scores are low, will this affect the ability to refinance?

Yes. Credit scores are a very important part of refinancing. There is unfortunately no "magic number" as credit scores are specific to the program you are trying to qualify for. We put a lot of detail about credit scores in this post: blog.compmort.com/index.php/mortgage-blog/what-credit-score-is-needed-for-a-mortgage

What are the main reasons people choose to refinance their mortgage?

The biggest reason that someone will refinance their mortgage is to save money! This happens by reducing your interest rate. Typically we'll recommend refinancing if you can drop your interest rate by a percentage point (assuming that you plan on staying in your home for several years).

Can someone refinance if they have a second mortgage?

Yes. They can choose to pay it off at closing or they can re-subordinate the loan (new loan would be in 2nd lien position).

How can home mortgage refinancing affect the financial situation for retirement?

Interest rate savings can be invested for retirement. You could also have a lower amortization to pay off your loan quicker.

What are the risks associated with refinancing a home?

Borrowers should always consider whether the savings of refinancing justify the costs of refinancing. The risks of a mortgage are specific to the borrower and the program/loan they are applying for. This can be overwhelming to sort through on your own... that's why we are here! Our Mortgage Bankers can help you determine whether or not refinancing will make sense.

What is the best way for people to get in contact with you?

We can be reached directly at 877-793-9362 or you can e-mail us at contactus@compmort.com. For those looking for further education, our best online resource is our blog blog.compmort.com and our website www.compmort.com

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Phone: 877-793-9362

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