- To lower your monthly payments by refinancing at a lower
interest rate.
- To convert a portion of your equity into cash by obtaining
a new loan for a larger balance than your current loan.
- To switch from an adjustable rate to the stability of a
fixed rate.
- To consolidate debt by refinancing a higher loan balance
and using the cash difference to pay off credit cards, auto
loans or other debts.
- To pay off the mortgage sooner by switching to a shorter
term.
Call us toll-free and speak to a personal loan consultant to find
out if refinancing is right for you.
How do I apply for a refinance loan?
Either fill out the application online or call us directly and
you may be approved in minutes.
What are the costs involved in refinancing?
The closing costs, including lender fees, are typically 1% to
2% of the loan amount. In addition, you may choose to pay points
in order to get a lower rate, or accept a higher rate in exchange
for having the lender pay some or all of your closing costs.
What criteria do lenders use when approving a loan?
Lenders look at three criteria: Capacity, Credit and Collateral.
CAPACITY
The lender will weigh your housing expenses and total debt against
your monthly income to determine your ability to repay a loan.
Theyll also need proof that you have the cash available for
down payment and closing costs by verifying funds from sources
such as bank accounts, stocks, bonds, mutual funds, sale of
an existing home, or gifts from family members.
CREDIT
To determine your credit risk, the lender will look at previous
mortgage payment history, rent payment history, credit card
use and installment debt payment history. If you pay your bills
regularly and on time, youre demonstrating the integrity that
lenders are looking for in a borrower.
COLLATERAL
When you ask for a home loan, youre putting the home itself
up for collateral, so the lender will want to know what the
home is worth.
How much documentation will I need to supply to verify the information
I provided on my application?
Every situation is different. Once you submit your loan application
online youll automatically receive a customized list of the
documents youll need to provide. If you apply over the phone,
youll receive this list within three business days.
What if I cant supply the standard documentation necessary
to get a loan?
We offer special loan features that include low documentation
or even no documentation. Call your personal loan consultant
for more details.
What is Private Mortgage Insurance (PMI) and why would I need
it?
In most cases, if your first mortgage amount is greater than
80% of the propertys value, the lender may obtain Private Mortgage
Insurance (PMI) to safeguard its investment against the possibility
of default. PMI is collected monthly along with the mortgage.
Within three days after your loan application is submitted youll
be sent an estimate projecting the amount of the monthly PMI
payment. As your equity increases, you may qualify to have PMI
removed. There may be ways to finance your home so that PMI
is not required. Your loan consultant can provide you with more
information.
What is an impound/escrow account?
Instead of paying large, lump sums to cover the costs of homeowners
insurance and property taxes, these payments are divided into
installments which are paid to the lender monthly along with
your loan principal and interest. The lender will hold the money
in an impound/escrow account and make the payments from the
account when they are due. Impound/escrow accounts may be optional,
or they may be required by the lender, depending on the location
of the property, the size of the loan in relation to the value
of the property, and the loan type.
What is homeowners insurance?
Homeowners insurance is designed to protect your home. It is
also known as hazard insurance, or fire insurance. While the
lender requires this coverage, you determine which insurance
company will carry the policy. Homeowners insurance premiums
are either paid directly to the insurance agency or by your
lender through an impound/escrow account.
How does a refinance closing work?
The refinance closing will be conducted the same way that your
loan was closed when you first purchased the property. Soon
after your loan is approved your loan consultant will send a
list of documents youll need to bring to the closing. Youll
also be sent an Estimated Settlement Statement that tells you
the amount, if any, youll need to bring to closing in the form
of a cashiers check, as well as an outline of how the funds
from your new loan will be disbursed. If this is a refinance
of a primary residence, the loan wont actually fund until three
business days after signing the loan documents, due to the borrowers
right of rescission.
Can I get a loan if Im not a U.S. citizen or if I live outside
the country?
Yes. As long as the property you are buying or refinancing is
in the United States, you can apply right here online. We offer
special programs for foreign nationals and resident aliens.
Call one of our loan consultants toll-free to find out more.
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