Are “Buy Now Refinance Free Later” Mortgages Too Good To Be True?
It is easy to fixate on how much easier your life would be if you could remove just one financial obstacle. If you are renting your home, you daydream about how much less stressed you would feel about your finances if you could put the same amount of money toward a mortgage payment every month as you are currently outing toward rent; in fact, if you did that, you would be able to pay off your mortgage balance ahead of schedule. Sadly, that goal is out of reach; you are nowhere near being able to afford a down payment or qualifying for a mortgage loan. If you are currently making payments on an adjustable-rate mortgage, you live in fear of the next balloon payment. If you have a fixed rate mortgage, you envy the people who can afford to refinance at a lower rate. It has been a very long time since Americans have heard the phrase “low interest rate,” but some mortgage lenders are offering mortgages that will make it easier to refinance when the days of low interest rates return. A Boca Raton foreclosure defense lawyer can help you modify your home mortgage loan so that you can avoid foreclosure.
How Do “Buy Now Refinance Free Later” Mortgages Work?
Even though the goal of refinancing a mortgage loan is to save money in the long term, it costs money to refinance. The closing costs you must pay usually equal two to five percent of the new loan amount, so you cannot be in a position to refinance unless you are in a position to deposit money in savings and keep it there in the months or years leading up to the refinance. With today’s sky-high interest rates, only the wealthiest people who bought houses in the past year are able to save up for a refinance. According to a recent article on Investopedia, some lenders are offering various types of “buy now refinance free later” promotions. These promotions involve the lender paying some or all of the costs of refinancing when lower interest rates become available. These promotions come with a deadline to refinance, so you have to choose wisely when to refinance and when to keep waiting for interest rates to get lower.
Can You Afford a “Buy Now Refinance Free Later” Mortgage?
“Buy now refinance free later” mortgages are an attractive option for people who can qualify for a mortgage but have misgivings about making a long-term commitment to today’s interest rates. The trouble is that you can only access these offers if you can qualify for a mortgage at today’s rates. It is a classic case of how no one wants to lend you money unless you already have money.
Contact a Debt Lawyer About Finding an Affordable Mortgage
A South Florida debt lawyer can help you avoid taking on mortgage debt that you will not be able to pay back. Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.