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3 Refinancing Myths in Greater Wilmington DE Real Estate

Thursday, July 20, 2017
by Katina Geralis

It is no secret that mortgage rates won't be this low forever and as a result, many Greater Wilmington DE homeowners are thinking about refinancing. Refinancing can indeed save you thousands if you strike while rates are low, however, this is one real estate topic that comes packaged with dozens of myths.

Below are three common refinancing myths that end up holding Southeastern Pennsylvania homeowners back from saving money on their loan:

1. You're Too Late to Refinance
If hearing about rising rates has caused you to hit pause on your decision to refinance, think again! You most definitely have not missed your chance to save on your mortgage. As long as your lender confirms that refinancing will indeed lower your monthly payment and you are on the same page with the costs associated with the refinance, now is still a great time to make it happen!

2. You Won't Qualify
Even if you are trying to improve your credit or have recently switched jobs, you may still be able to qualify for a refinance. Don't let this hold you back from inquiring! The best course of action is to meet with a local lender to discuss your options and your eligibility as many requirements are beginning to loosen again and you could be surprised!

3. You'll Have to Reset the Term to 30 Years
If a refinance could be favorable for you, but you've already paid off decades of your home loan, don't jump right into thinking the term will be reset to the 30 year mark. Perhaps the best move during your refinancing is not the standard 30-year loan, but a shorter term ARM (adjustable rate mortgage). Consider your future plans and the time you plan to live in your current home as a shorter loan could still allow you to save and when the higher rate sets in, you may be ready to sell and move on!

Questions about the local real estate market, selling your home, or recommendations for lenders in the Wilmington DE, Newark DE, or Southeastern PA area? Give the Kat Geralis Home Team a call today!

We look forward to hearing from you!

Katina Geralis
DE and PA Real Estate Expert
eXp Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
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Types of Debt That Will Affect Your DE or PA Mortgage Approval

Thursday, June 8, 2017
by Katina Geralis

Whether you've just started house-hunting in Greater Wilmington or Southeastern Pennsylvania or have already found your dream home, the next step is moving on to the mortgage application. Starting early is key as you may need to amend your credit report errors and score in order to increase your chances of approval with your lender. And what's more, there are certain types of debt that will have a major impact on your ability to secure the loan.

Below are three types of debt that will affect your mortgage approval in Wilmington, Newark, and beyond:

Student Loans
While they are considered unsecured debt, student loans are not necessarily harmful to your credit score if you make your payments on time. In fact, because of the lengths of the loans, they may even help to boost your score! Just keep in mind that these do affect your debt-to-income ratio (DTI), so a large loan amount may have an impact on the outcome.

Auto Loans
These loans are considered secured debt as the bank can take ownership of your vehicle if you don't pay on time. Auto loans are also harder to get approved for than credit cards, so lenders may look kindly upon the fact that you've already been approved for one.

Existing Mortgages
Mortgage loans also fall into the secured debt category as the bank can take ownership of your property should you not be able to pay. It's important to not miss a payment as this can ultimately cause a lender to turn you down for a new loan, however, if you make payments on time, a mortgage can boost your credit score! Existing mortgages play a major role in your DTI, so if possible, try to pay down as much as you can before taking out another.

Do not hesitate to contact the Kat Geralis Home Team with any questions you have about the mortgage approval process, available properties in the area, or the local market! We're here to help!

Katina Geralis
DE and PA Real Estate Expert
eXp Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

What You Should Know Before Refinancing Your Delaware or Pennsylvania Home

Thursday, December 22, 2016
by Katina Geralis

The idea of cutting your monthly mortgage payment down by refinancing your loan may sound intriguing to you as a Delaware or Southeastern Pennsylvania homeowner, but there is much more to consider before diving in. In fact, there are cases in which refinancing does not truly pay off for the homeowner. But don't worry! As your local real estate experts, you can count on the Kat Geralis Home Team to help you make the best decision for your situation. 

Below are four factors to consider before making the decision to refinance your mortgage: 

Refinancing is not free
Just as you likely paid some closing costs when you purchased your home in Wilmington, Newark and the surrounding areas, you will be required to again with refinancing. Closing costs are typically 2 to 5 percent of your loan amount and will need to be paid up front when you refinance. While your lender may offer a no closing costs refinance, be aware that it may come packaged with a higher interest rate. It's always wise to consider all of your options!

The savings should pay off quickly
When deciding if a refinance is right for you and your Delaware or Pennsylvania home, you need to look at the savings. Refinancing makes the most sense when your interest rate is more than 100 points above the current interest rates. The savings from your refinance should also recoup itself in under two years. For example, if your refinance cost you $2,800 and you end up saving $179 per month, the savings would be recouped in 15 months. It pays to crunch the numbers! 

You may be able to cancel PMI
As we've talked about in the past, private mortgage insurance (PMI) is required for buyers that put down less than 20 percent on their new home. However, if you've gained enough equity in your home over the past years, a refinance may mean you're able to cancel your PMI. Just remember the loan balance needs to be 80 percent or less of your home's value. 

Refinancing resets your loan
Perhaps one of the most important factors to consider is that a refinance is essentially hitting the reset button on your home loan. If you've had your loan for many years and have reached the point where you're paying down the principal instead of interest, refinancing may not be the best idea as you will likely reverse this dynamic.

Questions about selling your home in Greater Wilmington, Newark, Chester County or Delaware County PA? Do not hesitate to give the Kat Geralis Home Team a call today!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

Homebuyers: How to Find the Right Mortgage in Wilmington, Delaware

Thursday, March 19, 2015
by Katina Geralis


As more homebuyers decide to make the transition from renting to homeownership, it's becoming clear that much of the real estate market is uncharted territory for them.

The home buying process goes beyond just searching for your dream home— it involves a saving for a down payment, getting pre-approved and it's also important you are prepared to file a mortgage application. 

Now that doesn't mean all mortgages are created equal. As a homebuyer in Wilmington, Delaware—especially a first-time homebuyer—you will want to find the best mortgage for you and your personal situation. How can you tell you've chosen correctly? Keep the following in mind:

  • Fixed-rate mortgages

A fixed-rate mortgage, just as the name suggests, has the same interest rate throughout the life of the loan. This type of mortgage is great if interest rates begin to climb, however, if they fall, you will be stuck with the same payment.

  • Adjustable-rate mortgages

Think of this as the opposite— the mortgage with a rate that changes throughout the life of the loan. An adjustable-rate mortgage usually begins with a low, short-term interest rate (which will stay low if rates follow suit) and yet if rates rise, your payment could do the same.

  • 30-year mortgages

As a homebuyer in the Wilmington and Newark area, you have likely heard about 30-year mortgages. This is a common route, but you also have the option of taking on a shorter term mortgage; for instance, a 10, 15 or 20 year loan. The loans with the shorter payback period will allow you to pay less interest, but the payments will be higher than the standard 30-year mortgage.

Now, Wilmington homebuyers, it's also important you shop around for a lender. Don't be too quick to settle on the first company to offer you a mortgage. Interest rates and terms can vary widely among lenders and you will need to compare these to find the best deal. If you don't know where to begin shopping, the Kat Geralis Home Team would be glad to provide recommendations!

The spring real estate market is heating up and will only continue to do so as we progress into April. You will be competing with numerous other motivated buyers this season, so do not wait to get a jump on the mortgage process. The earlier you start, the earlier you can settle into the home of your dreams in Greater Wilmington!

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If buying a home is on your mind this spring, you are already on the right track toward building long-term wealth! Today, financing costs are generally low and with the rising cost of rent in Wilmington and Newark, real estate is the best possible investment you can make. 

Stop throwing your money away in the "renter's trap!" It's time you start building wealth the right way!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook

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