REFINANCING REDEFINED
Whether your goal is to get a lower payment, remodel your home, consolidate your debts, or pay off your home quicker… we will work with you to craft a strategy to meet your goals!
Our loan originators can talk to you about combining multiple loans into one easy monthly payment! A convenient option for managing your finances
What better way to use your hard-earned equity than to invest it back into your home with repairs or improvements! Improve your living space while simultaneously increasing the value of your home.
Whether you or the market changed, there are many ways to refinance and end up with a lower monthly payment! Find a situation that works for you with a payment you are comfortable with.
There’s no time like the present: talk to one of our loan originators about refinancing options that have you paying less interest and paying off sooner! A great option for long-term home ownership.
Explore each step to learn more.
Do you want to reduce your monthly payment, pull cash out of your home equity for home improvements, or debt consolidation? Are you looking to go from an adjustable to fixed rate? Once you determine your goal we can review the loan options available to decide which one best helps you achieve that goal.
A Mortgage Loan Originator can answer any questions you have about the loan program you’re considering or can make a recommendation based on your goals. We’ll make sure that you understand every detail of your loan program and answer any questions you have before moving forward.
Once you’ve researched all the loan options available your Mortgage Loan Originator will confirm your loan program, rate, and payment, and will answer any questions you may have. At this point you can lock in your interest rate to protect you against any fluctuations in the market.
Your Mortgage Loan Originator will provide you a list of items for you to send so that we can verify all your information to get your loan approved and closed quickly. A timely response to your Mortgage Loan Originator’s documentation request will ensure that your loan will stay on track for closing.
Your Loan Processor will organize the paperwork, make sure the documentation is complete, and prepare your file for underwriting. They will verify employment, income, assets and debts and examine payment histories. They will collect funds for and order an appraisal on the property by a licensed real estate appraiser. You will also need to shop for and provide proof of homeowner’s insurance to your Mortgage Loan Originator.
The closing department will work with the Title Company to prepare loan documents for closing. The Title Company will schedule a date and time for you to review and sign your documents. Your loan will proceed to recording after all documents are in and the rescission period has ended.
Look at your specific situation and your motivation for refinancing. The most common reasons to refinance are to reduce your rate and/or payment, convert from an adjustable to a fixed rate, or pull cash out of your equity to consolidate debt or improve your home. If your objective is to reduce your rate and payment, you should review your current interest rate and see how much you can save. If you are converting your adjustable rate into a fixed rate, you may see an increase in your rate and payment, but you’ll get peace of mind knowing your rate will never increase again. If you are using the equity in your home to consolidate debt, your overall loan balance and payment may go up, but you will save monthly because you will eliminate the monthly obligations that you are paying off. Your Mortgage Loan Originator can help you determine whether refinancing makes sense for you.
It depends on what your current interest rate is and what your motivation is for refinancing. If your current rate is higher than what is available in the market, it probably makes sense to refinance. To get an idea of what you could save by refinancing, call one of our Mortgage Loan Originators for some expert advice.
Typically, a second mortgage is paid off through the refinance. We will consolidate both loans into one new first mortgage and you will only have one payment each month. If you’d prefer to keep your second mortgage intact, we may be able to ask your second mortgage lender to remain in second position and allow us to refinance the first loan. This process is called subordination and there is typically a fee charged by the second mortgage lender.
Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These fees include document preparation and third party fees such as credit report, title, escrow, notary, and recording fees. Other fees include the appraisal fee and lender fees such as processing and underwriting. If you are paying points to lower the rate, the cost of each point that you pay equals 1% of your new loan amount. Aside from the closing fees, there will be prorated pre-paid costs for items such as property taxes, interest, and homeowner’s insurance. If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.
Standard documentation collected for a refinance transaction includes information regarding your income such as paystubs covering the most recent 30 days and W-2s for the last two years, tax returns, asset information such as bank or mutual fund/stock statements covering the last 60 days and current loan information such as your most recent mortgage statement and homeowner’s insurance declarations page.
Depending on the reasons why your credit is imperfect, there are great loan options available including our government programs. Call and speak with one of our expert Mortgage Loan Originators to determine whether you qualify for one of our programs.
There is no rule-of-thumb when it comes to refinancing because there are different reasons to refinance. If you are currently in an adjustable rate looking to get into a long-term fixed loan, your rate and payment may increase, but you will be in a better long-term situation knowing your rate and payment will not change. If you are looking to consolidate debt, your loan amount and mortgage payments may go up, but your overall monthly outflow will decrease because you will have eliminated some or all of your credit card bills and other monthly obligations. There are also no- and low-cost refinance options that can lower your rate and payment with no or minimal investment. It is a good idea to go over your specific situation with a Mortgage Loan Originator to determine whether refinancing makes sense or not.