At IMC:

• We know you do not deal with mortgage all the time and you may ask questions that you feel unnecessary. But we are total happy that you have questions and we are not going to hurry you up so you can ask less questions;
• We know your technical English words might be limited and we speak your language and we make things simply to you;
• We post your questions here on this page for all our friends, so check back often.

Refinance? Why? and How?

1) How do I know if I should refinance?

You should refinance if:

• you can lower your current mortgage rate at very little or no cost;
• your existing mortgage is going into a floating rate and you don't want to worry about the rate on the on going basis;
• you need more money and you have paid in some money into your house.

2) How come I always miss the good deal?

Well, some people are too cautious in their decision making process. They have the ears to hear in creditable deals about the other? loan. They spent all their efforts in searching that deal. For example, one of our clients was in search of a incredible deal with 4.25% rate refinance while the overall market goes at rate of 5.75%. There were no way for us to match this deal without charging buy down points. So we recommended our client to obtain details of that incredible deal. Fortunately he got it to us and it turned out that the rate was indeed 4.25% but with 1.5% buy down point and 1% origination fee. So this client could end up paying $8,000 on closing with 4.25% rate than paying 4,300.00 with 5.75%. So you may not be missing all the good deals. Just you feel that you are missing the good deal. Let us help you and we will explain everything to you. So you will feel a lot better about the deal we can present to you.

3) Why should I refinance to a new 30-year mortgage? Isn't it going to cost me more in the long run since I now have to pay it for 30 years?

Not if you do it correctly.

Let's say that you have a 30-year fixed rate loan at 9.0% and have been paying on it for 5 years. If you can lower your rate to 7.5%. If you want to pay it off in 25 years (the remaining term of your existing loan) you merely have to use the calculator to calculate the payment required to pay the new loan off in 25 years. It will be less than what you are now paying. The point here is that if you can lower your rate that much; you cannot lose!

4) But I hear that the economy is collapsing and rates will go down soon.

If you make your financial decisions based on what you hear on the news you will go broke. The news tells you what happened yesterday. If you can refinance at no cost and save money then do it immediately. If rates get higher, you win and if the rate goes lower do it again.

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