Weighing the Options of Refinancing

In the market for a new mortgage loan? We can assist you! Ready to begin?  Please contact us.

Some have said that only when your new interest will be at least 2 points below your current rate, should you refinance your loan. That might have been good advice years ago, but with the fact that refinancing has been costing less recently, it is a good time to think about a new mortgage! Refinancing has a number of benefits that can make it worth the up-front expenditure a few times over.

Advantages of Refinancing

You might be able to bring down your interest rate (sometimes by a lot) and reduce your monthly payment amount with a refinanced mortgage. Additionally, you could be given the option of pulling out some of the equity in your home by "cashing out" some funds to remodel your home, consolidate debt, or take your family on a vacation. You could have the option to refinance into a shorter-term mortgage, giving you the ability to add to your equity quicker.

Expenses and Fees

All these advantages do come with some expense, though. When you refinance, you're paying for most of the same things you were charged for when you obtained your current mortgage. Included in your costs will probably be an appraisal, underwriting fees, lender's title insurance, settlement costs, and other fees.

Do the Math

Paying discount points can help you get a better interest rate. The money you'll save over the life of the mortgage may be significant if you have paid up front about 3% of the new loan balance. You may have heard that the points may be tax deductible, but because tax regulations are difficult to keep up with, we urge you to consult with a tax professional before depending on this.

Another thing about taxes is that once your interest rate is reduced, of course you'll also be lowering the paid interest amount that you will be able to deduct on your taxes. This is one more cost that some borrowers consider. Call us to help you do the math.

In the end, for most people the total of up-front costs to refinance will be paid back very quickly in monthly savings. We'll work with you to determine which loan program is right for you, taking into account your cash on hand, the likelihood of selling your residence in the near future, and the effect refinancing could have on your taxes. Contact us to get you started.

Curious about refinancing your home? Give us a call at 0433803520 .

Which Refinancing Option is Best for You?

Even though it may seem like it at times, there aren't as many loan programs as there are applicants! We can guide you to find the refinance loan program that will fit your situation the best. Contact us to get things started. What are your reasons for refinancing? Keeping in mind the following will help you narrow your choices.

Lowering Your Payments

Are your refinance goals to lower your rate and consequently your mortgage payments? In that case, a low, fixed rate loan may be your best option. An ARM (Adjustable Rate Mortgage) or a fixed mortgage with a high rate are loans that you might want to refinance. Different that the ARM, your low fixed-rate mortgage will stay at a certain low rate for the life of the loan, even if interest rates rise. This kind of loan is especially a wise choice if you don't plan to sell your home within the next five years or so. However, an ARM with a low initial payment may be a smarter way to reduce your mortgage payments if you see yourself moving in the next few years. Refinancing can also cause your total finance charges to be more over the life of the loan.

Cashing Out

Is your refinance goal mainly to "cash out" some home equity? Your home needs new carpet; your son has gone to University and needs tuition; or you are planning a special vacation. Then you will need to apply for a loan above the balance remaining of your present mortgage loan.Then you will want If you've had your current mortgage for a long time and/or have a high interest mortgage, you might\could be able to do this without increasing your monthly payment.

Consolidating Your Debt

Do you have other debt, perhaps with a high interest rate, that you'd like to consolidate? If you hold some debt with steep interest (like credit cards or car loans), you might be able to take care of that debt with a lower rate loan with your refinance, if you have the home equity built up to make it work.

Building up Equity Faster

Are you planning to fatten your home equity faster, and pay off your mortgage loan more quickly? If this is your wish, your refinance can change you to a mortgage loan program with a short, for example: a 15 year loan. You will be paying less interest and increasing your equity faster, even though your payments will generally be higher than you were paying. But, you might be able to switch without a higher monthly mortgage payment if your longer term loan was closed a while ago, and the remaining balance is small. You could even pay less! To help you figure out your options and the multiple benefits in refinancing, please contact us. We are here for you.


15+ Lenders to choose from....
We are not tied to any one lender and are able to search the market, working for you. We offer all the standard mainstream mortgage products most brokers offer, but more importantly typically assist those with more complex and specialist finance needs. Clients regularly tell us they appreciate us not only finding but securing the right product, from the right lender and always at the right time.


Loan Application Checklist


Thank YOU for the opportunity to earn your business.

 "Surprises are for birthday parties, not real estate transactions".  
Below is a complete list of what we will need to avoid any surprises. :)

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For a complete home purchase pre-approval, please remit the following information. Please allow 1-2 business days for review:

 


Documents we need – PDF only please – email, fax or drop off at our office:

ð        2016 and 2017 complete federal tax returns – including ALL schedules and pages

ð        2016 and 2017 W-2’s and/or 1099’s {If self-employed; complete business returns – including K-1’s for any partnerships, schedule C’s and 1120’s unreimbursed expenses}

ð        Most recent 30 days paystubs

ð        Past two month’s complete bank account statements – include ALL pages for any account being used for this transaction

ð        Copy of current 401K / IRA / other retirement statement – include ALL pages

ð        Copy of driver’s licenses for all borrowers

ð        Declarations sheet completed --> Brett will email to you

ð        Signed and Dated Borrower’s Authorization --> Brett will email to you (this will allow us to pull credit and verify your employment) 



Questions we need answered – please send an email or attach a word doc with ALL answers:

ð        Residence history – include current and past addresses  going back at least two years – include whether owned or rented AND  how long (dates and years) lived at each address

ð        Work history - including: company, local work address, HR dept phone number, job title, hire date, end date, gross monthly income [must go back at least two years]
ð        Are you married?

ð        Number of dependents and each of their ages

ð        Number of total school years completed ex. high school = 12

ð        Current rent amount or copy of current mortgage statement

ð        Contact info for each borrower: cell phone and land line phone numbers, email addresses, and please indicate your preferred method of communication (phone, text, email)

ð        Price range of new home and location (which city and subdivision?)

ð        Amount of money to use for down payment  AND source

ð        Contact info for homeowner’s insurance

ð        Any potential credit issues? Bank Foreclosure, child support, collections, etc?

ð        Your Realtor’s name, company and contact info



Should you talk to a mortgage professional before house hunting?

Absolutely! Even if you haven't so much as picked out houses to visit yet, it's important to see your mortgage professional first. Why? What can we do for you if you haven't negotiated a price, and don't know how much you want to borrow?

When we pre-qualify you, we help you determine how much of a monthly mortgage payment you can afford, and how much we can loan you. We do this by considering your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. It's short and to the point, and we keep the paperwork to a minimum!

Once you qualify, we give you what's called a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which says that we are working with you to find the best loan to meet your needs and that we're confident you'll qualify for a loan for a certain amount.

When you find a house that catches your eye, and you decide to make an offer, being pre-qualified for a mortgage will do a couple of things. First, it lets you know how much you can offer. Your real estate agent will help you decide on an appropriate offer, but being pre-qualified gives you the confidence to know you can follow through.

More importantly, to a home seller, your being pre-qualified is like you walked into their house with a suitcase full of cash to make the deal! They won't have to wonder if they're wasting their time because you'll never qualify for a mortgage to finance the amount you're offering for the home. You have the clout of a buyer ready to make the deal right now!

You can always use the calculators available on our site to get an idea of how much mortgage you can afford -- but it's important to meet with us. For one thing, you'll need a Pre-Qualification Letter! For another thing, we may be able to find a different mortgage program that fits your needs better.