1. Should I refinance?
To determine whether or not it is a good idea for you to refinance, you should 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. Your licensed Loan Officer can help you determine whether or not refinancing makes sense for you.
2. How much can I save if I refinance?
Every situation is different. It depends on what your current interest 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, check out our calculators and enter numbers specific to your situation or call one of our licensed Loan Officers for some expert advice.
3. What if I have a second mortgage on my home? Can I still refinance?
Typically, any second mortgages are 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 lien 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.
4. Am I allowed to refinance if my property value is less than what I owe?
There are options that may allow you to refinance your loan even if the value of your home is less than what you owe. Call and speak with one of our licensed Loan Officers to see if you qualify for one of our programs
5. What are the costs associated with refinancing?
Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These fees include 3rd 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. Aside from the closing fees, there will be prorated pre-paid costs for items such as property taxes, interest, and homeowners insurance (if applicable). If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.
6. What type of documentation do I need for refinancing?
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, 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 homeowners insurance declarations page.
7. Can I refinance with bad credit?
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 licensed Loan Officers to determine whether or not you qualify for one of our programs.
8. How long is the refinance process?
Most refinance transactions close in about 30 days from application to closing. As long as you do your part in delivering the documentation that we need in a timely manner, we should be able to close your loan within 30 days.