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Underserved New York communities should know how to refinance

On Behalf of | Oct 12, 2021 | Real Estate |

In New York and throughout the United States, people have been trying to adapt to the complicated and difficult circumstances that are still in progress. While many have faced medical costs, job loss and other challenges, there are also advantageous opportunities. That includes the possibility of refinancing a mortgage. This can be confusing to everyone, but research indicates that Blacks and Hispanics are especially hesitant. Still, it can be financially beneficial and knowing certain facts is important when thinking about it as an alternative.

Points to remember when considering a refinance

People who are trying to purchase a home might not have a choice in accepting a high interest rate just to get the mortgage. Today, mortgage rates are substantially reduced. With that, it may be time to think about a refinance. Statistically, many municipalities are lacking in Black and Hispanic people who take advantage of the low interest rates. In Philadelphia, Boston and Atlanta, only 9% of Latinos refinanced. With Blacks people, it was 6%. Certain factors were relevant including financial problems, credit scores lowering and not knowing about how to go about it. Even with understandable reluctance, there are ways to pursue a refinance.

Getting counseling from an agency approved by the U.S. Department of Housing and Urban Development (HUD) can yield useful information. These agencies have oversight, will know the ins and outs, and are inexpensive or free. They can assist with getting all the necessary information together to apply for a refinance. It is also useful to go to more than one lender when seeking a refinance. The more applications, the better the chance there is that one or more will approve. It is important to know that several credit checks might damage a credit score, but doing it within quick succession will limit that negative impact. People should also be fully prepared with financial statements and, if there are issues, explanations as to why that is the case. Giving a cogent explanation to the bank can supersede negative assessments of a person’s financial worthiness for a refinance.

Legal assistance can also be beneficial when refinancing

People who go through the refinance process on their own are prone to making mistakes that can hinder their efforts. This is especially true for people who are generally reluctant to take what they believe is a risk and go to the bank or another lender for a refinance. Having legal assistance from the start is wise with any real estate transaction. Consulting with those with experience in these endeavors can help with achieving a positive result.