Everyone is talking about Refinance. Is Refinancing for Me?


Everyone is talking about Refinance
Is Refinancing for Me?


There are many factors that influence the rise and fall of mortgage interest rates ...

Case in point, right now the fear of a global coronavirus outbreak has the markets in a tither and that anxiety has resulted in lower and fluctuating interest rates.  How long will the virus continue to influence the markets?  Right now, that is unclear.

As typical, the lower interest rates have many asking questions and inquiring about refinancing.  


Homeowners ask:
  1. Can I Refinance?
  2. Is it smart to Refinance?  
  3. What can I accomplish by Refinancing? 

Years ago, the theory was ... if you could save 1 percentage (1%) point off your mortgage rate ... it was smart to Refinance your loan.  

That thinking then gave way to a new measurement.  The goal of saving one-half to three-quarters (1/2% to 3/4%) off the current mortgage rate held then became the new norm.  

Because of those old but well-known "rules of thumb", many of my current clients now ask me, "What defined percentage or dollar amount of savings should be my signal that it's my time to Refinance?"  

Unfortunately, an answer is not that quickly available or easy to provide ... 

The wisdom or "correctness" of their refinancing (or not) actually hinges on far more than interest rates alone.  There is no universal, quick or simple broad answer to provide.  

Instead, the answer they seek is truly specific to their individual and unique needs and goals.  And in order to provide them that answer, I must ask questions and gain facts first.

For anyone considering refinancing, their journey of discovery must start with a thorough understanding of the details of their current mortgage and current mortgage statement. Many decision-making tools and needed information are found there.

Here's just a small sample of the facts/info that must be shared between homeowner/borrower and lender when considering a Refinance:

  • Current Mortgage Interest Rate
  • Current Loan Balance
  • Current Mortgage Escrow(s) Balance
  • Current equity held in the home
  • Does the current payment include PMI (Private Mortgage Insurance)?
  • Remaining term of mortgage payment (Or the Original Loan Term)
  • Current Credit Scores
  • Current outstanding Debt (Debt to Income Ratios)
  • More ...

Other details must be discussed as well in order to come to a solid and wise monetary decision.  Additional  discussion will include the following:

  • What needs must the Refinance meet?
       A.  Payoff of other debt(s) such as higher rate credit cards, Student Loans, or Home Equity Lines of Credit
       B.  Is a reduction in payment term desired?  (Example: Reducing a 30-year loan to a 20-year of 15-year term)
       C.  Getting rid of PMI (Private Mortgage Insurance)
       D.  Cash-Out:  For payment of home improvements or home repairs
       E.  Lowering of Interest Rate (Lowering of monthly mortgage payments)
       F.  Change of Mortgage Program (Example: ARM to a Fixed-Rate loan)

Borrower and Lender must consider much more together too.  Such as,

  • How long will it take to recoup the cost of the Refinance?
  • Expectations to stay in the current home?  (This speaks directly to calculating the "break-even" point for refinancing).
  • Add closing costs to the Loan balance or pay from personal savings to save even more interest over time?
  • More ...

Borrowers considering this action must remember that closing costs will be involved should they pursue a Refinance Loan.  Those costs must figure into their decision-making process.  

As with an original mortgage, those costs, and the interest rate secured, rest upon many factors, including credit scores, debt held, and more.  Generally, Refinance Closing Costs will include:
  • Appraisal Fee
  • Loan Origination Fee
  • Title Insurance
  • Homeowners Insurance
  • Taxes
  • More ... (Costs specific to the individual Borrower)

There are different methods that can be utilized for paying the Closing Costs incurred with a Refinance.  Payment can be made at the time of Closing.  It's also possible that the costs of Refinancing can be "rolled into" the new loan itself.

Again, a thorough discussion of the pros and cons of each method ... as well as the possibility and availability of doing so ... must be held between borrower and lender.  A clear and wise choice can only be revealed after such a conversation is held.

Of special note:  Because the success (and monies) realized from a Refinance rest so heavily upon interest rates, response time and timing need to be of the utmost concern.  Clients must remain available and respond quickly to all communications and requests from their lender.  

And both client and lender must be ready to react to fluid market indicators.  Response time and timing of actions taken can make a huge difference as to the interest rate secured and ultimate success found.

As with all mortgage financing, those hoping to Refinance benefit from starting their mortgage process early.  Acting proactively as to checking their credit, their credit report, collection of needed documentation ... and reaching out to their lender.

So for anyone wondering ... can I Refinance?  Is it smart to Refinance?  Start now.  Don't hesitate.  Don't wait.  

The sooner you start and the sooner you ask your questions, the sooner you will have the answers you need to move forward confidently ...  



* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf.
I'm easily found at:



Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI License #216987


American Portfolio Mortgage Corp.

NMLS #175656




Direct: 815.524.2280
Cell: 708.921.6331
eFax: 815.524.2281






Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender 

     Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  


Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in
Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Lockport, Crest Hill, Plainfield, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and 
elsewhere within IL & WI.  

Your Referrals & Testimonials are Greatly Appreciated!















Low Housing Levels are Creating Fast-Paced Housing Market


 Low Housing Levels are Creating
Fast-Paced Housing Market



You don't have to look far to find headlines that report about the housing shortage that many U.S. housing markets are currently experiencing.  They're everywhere.

One reads, "Housing inventory falls to a two-year low". 


Another reveals,  "For-Sale Housing Inventory at Multi-Year Low".  And that's just a small sampling of all that's available across the many media formats.


This lower level of available housing comes at the same time that the markets are seeing an uptick in the number of consumers wanting to buy a home.  Lower, tempting mortgage rates have made the prospect of homeownership, step-up buying, and refinancing attractive to a growing number of prospective buyers.

Many prospects now entering a Chicago-area home search are finding that because of current low housing inventory, they're competing with others (sometimes multiple buyers) during the bidding process.  And this means they are under greater pressure to make quick decisions.

In these situations, these potential buyers need to be fully prepared and able to make sound financial decisions for themselves.  In order to do this, they have to have already taken steps and pro-active measures to fully-educate and prepare themselves.

So what does "pro-active measures" and "preparation" actually mean?

Homebuyers need to have already taken measures to secure their home financing.  That means they have already:


In other words, the above-mentioned steps must have been performed and completed prior to the start of viewing homes and placing bids on them.

Buyers need to act proactively.  They need to be up and running regarding their mortgage financing.  

When they have done this, they then can quickly produce a PRE-APPROVAL LETTER proving to a Seller their capability to buy successfully.  (Read about the advantages and benefit of Pre-Approval VS Pre-Qualification).

Education ... preparation ... action.  Each is crucial when buying in a low-inventory/multiple bidder Chicago-area housing market.  

Give yourself every advantage possible.  Contact me or your own local mortgage lender now ...



* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf.
I'm easily found at:



Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp.

NMLS #175656



Direct:  815.524.2280
Cell:  708.921.6331
eFax:  815.524.2281






Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender 

     Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  


Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in
Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Lockport, Crest Hill, Plainfield, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and 
elsewhere within IL & WI.  

Your Referrals & Testimonials are Greatly Appreciated!















Procrastination and Mortgage Financing Do Not Mix



Procrastination and Mortgage Financing
Do Not Mix 



If you read about real estate and financing much at all, you've probably run across numerous articles that spoke to the challenges and frustrations that can be found in modern-day transactions and their financing ...

And as a mortgage lender, I won't deny that it can be true.  Challenges and frustrations exist.  For clients and professionals alike.

But ... and there's always a "but" , right? 

In most cases, those challenges and frustrations don't need to be overly stressful, insurmountable or deal-killing.  Answers and solutions typically do exist.

It's been my experience, that what causes or contributes to many of the issues and challenges heard and read about ... and yes, the high levels of stress experienced in many clients' transactions ... is procrastination.  Tasks, phone calls, communications, inquiries, documenting delays ... forgotten, side-stepped, pushed to the back-burner too long.

And simply put, procrastination and mortgage financing don't mix well.  Here's just one example of this being true ...

Just yesterday I received a call from past clients of mine.  They related that they'd received my latest postcard mailing (and previous ones) and it motivated them to contact me.  Welcome news for any lender to hear.

These clients had been thinking of selling their present home and buying a new one for quite a while, but they had gotten side-tracked and forgotten to call each time they had received something from me.  

But now they want to take action ... immediately.  They want to put their home on the market and go looking for a new one.  Their agent says they just need a Pre-qualification Letter.

Again, this should be great news, right?  

Well yes, it should be.  But unfortunately the clients have placed themselves in a poor position credit-wise since we last worked together.  

Their credit is not currently where they need it to be in order to move forward.  Their goal is not achievable right now.  They need to take some corrective actions if they wish to accomplish their goal in the future.  

They could have found a different, more positive outcome if they had taken action and contacted me when they first decided to buy a new home.  We could have addressed their issues and taken measures to improve their credit.  

Their financial circumstances could have improved to a point where they could haven taken action now, as they hoped for.  Instead, they have to wait.

Here's another example of procrastination.  This one takes a different type of toll ...

A client of mine is a real estate investor, always looking for a new property to add to his growing real estate portfolio.  

He'd been monitoring the progression of a sale of a specific condo property for quite a while and he's now successfully contracted to buy this property.  

I've been working with him on securing his financing for the purchase.  But it's always hard to reach him and get him to respond in a timely and efficient manner.  I get it.  We all have lives.

But during the same fore-mentioned time period, he's also arranged some travel for his wife.  Why is this detail important?

The wife's signature is required on documentation for purchase and financing of this condo property (and has always been in previous transactions).  But she is going to be out of town on the day of Closing and the Closing Date is upon us.  He's just telling me this now.

Can we solve this issue?  Certainly ...

But there is a mad last-minute scramble to get the necessary paperwork done and the clients are stressed-out about it (as well as their agent and attorney) It all could have been avoided.  It's an issue that could easily have been addressed or completed during less stressful times.  

But ... 

It is said that ...


Procrastination is, hands down, our 
favorite form of self-sabotage ...  (Alyce P. Cornyn-Selby)   


And in financing and real estate, I believe this to be especially true.  Just see the above two examples.

It's far better to take pro-active action ... precipitant steps ... and talk to your lender early in your decision-making process.  To discover possible hurdles, tackle issues, and make plans head on and preemptively.  

Regarding these matters, there is simply no such thing as "too early" ...  

Avoiding the issues that result from procrastination is such an easy thing to do.   The benefits of taking action can be enormous.

So if you've been thinking of buying ... even if it's in the future or down the road ... reach out NOW.  Ask your questions.  Get the info you need.  Kickstart a plan.  Ask for assistance.  Just do it ...  




*  Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf.
I'm easily found at:


Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI License #216987

American Portfolio Mortgage Corp.
NMLS #175656



Direct:  815.524.2280
Cell:  708.921.6331
eFax:  815.524.2281






Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender 

     Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  


Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in
Chicago and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Lockport, Crest Hill, Plainfield, Channahon, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and 
elsewhere within IL & WI.  

Your Referrals & Testimonials are Greatly Appreciated!































































Everyone is talking about Refinance. Is Refinancing for Me?

Everyone is talking about Refinance Is Refinancing for Me? There are many factors that influence the rise and fall of mortgage inter...