PARAMOUNT MORTGAGE - LENDER'S BLOG

Click here to watch the interview with Paramount Mortgage President John Frank

KSDK- With interest rates falling, this may be a good time to refinance your home mortgage.

John Frank, president, Paramount Mortgage offers some tips for homeowners seeking to refinance.

1. Know your current situation: It is helpful for consumers to be aware of their credit histories-and take care of any outstanding derogatory items. It is also good for people to examine on a monthly basis what he or she is comfortable putting towards housing expense without sacrificing other important necessities or lifestyle choices. Being aware of this will allow you to go to the next step successfully.

2. Work with professionals and build a team (realtors, mortgage bankers): Step 1 is an important exercise because professionals will work with your requirements (formulated in Step 1) and correlate that information to a proper sales price, loan amount and monthly payment. You may be surprised that you qualify for MORE on paper than what you though about previously. Insist on meeting face to face with these individuals- and treat it is as a job interview- they are working for you.

3. Request information in writing: All cost and fees incurred in the buying, selling and refinance process should be clearly stated in writing. Ask questions if you don't understand. As for mortgages, insist on a formal LOCK IN letter to outline the deal- BEFORE YOU GET TO THE CLOSING and have an unpleasant surprise.

4. Know what you are paying for: Review the fees listed on the written material. If it does not have a direct benefit to you or provide a truly necessary service- Question it!

5. Be familiar with red flags: These include prepayment penalties, floating interest rates, a delayed payment schedule, or any last minute change. These are not always necessarily bad, but need to be explored.

Watch the complete interview at KSDK.com