Bank of America purchased leading mortgage banker Countrywide in 2008 after the housing market collapse threatened to dissolve Countrywide’s mortgages. Since then, there have been a number of changes to the way that Countrywide does business, which may or may not necessitate a mortgage refinance for the average homeowner. In order to determine whether you need to refinance your mortgage, you have to ask yourself, “what are the new refinance rates this will provide me? How much money will I save?” While some people have bad things to say about Countrywide refinances and others have good things to say, you will only know the truth if you run the numbers yourself.
What Can I Expect from a Countrywide Refinance?
There are two major types of Countrywide refinances – no-cost and standard. No-cost refinances tend to be best for people who refinance often or who don’t plan on keeping a property for very long. These refinances tend to have higher refinance rates, but you don’t have to pay any of the closing costs. No-cost refis are only good if you’re not in it for the long haul, because you have to pay much higher rates for the opportunity not to pay a large amount up front. For homeowners seeking to live somewhere for awhile, it makes a lot more sense to get a standard refinance with lower rates.
Tips for Navigating Countrywide Refinance Rates
Getting a refinance from Countrywide can be a difficult proposition, especially since they’re now owned by Bank of America. They don’t want to lose any of their money. Therefore, follow these tips to keep an eye on Countrywide. First, put together your W2s and your expenses over the past year so bankers know that you know what you can afford. It goes without saying that you should be keeping your receipts and other documentation. Second, read through all the fine print, especially focusing on the initial and final terms of the lease. If they’re different, see another mortgage refinancer. Third, your house will be appraised – prepare for it! And finally, try not to close at the end of the month. Bankers are crankiest then.
Responses to Countrywide Allegations
There have been a number of allegations that Countrywide has been irresponsible in the past because they allowed financial speculators to bet on the solvency of mortgages that Countrywide gave to people who couldn’t afford it. However, records and criteria have become stricter since then,