Refinance Loans
Refinancing a home mortgage can be a big decision for many homeowners. Your situation and needs change over time, so why shouldn't your mortgage? Now might be the right time for you to refinance into a lower rate mortgage.
How You Can Benefit from a Refinance
Refinancing is simply getting one loan to pay off another. At Loans, Inc., we're ready to find the right refinancing solution for you. Our staff of refinance experts will help you evaluate your mortgage needs and draft a refinancing plan that will save you money.
Why Consider Refinancing?
People refinance for a number of reasons. You may want to:
- Consolidate first and second mortgages
- Get a lower interest rate or lower monthly payment
- Switch from an Adjustable to a Fixed-rate Mortgage
- Stop paying Private Mortgage Insurance (PMI)
- Cash out some of your equity for home renovations
- Consolidate high-interest debt like credit cards
When Does Refinancing Make Sense?
If you're planning on staying in your home for more than two years, a refinance mortgage is typically a great option. Because refinancing requires closing costs, homeowners who plan to stay in their home for more than two years will usually make up for those costs with lower monthly payments.
Access Your Home's Equity
For most people, a home is their most important and substantial investment. If your home is now worth more than when you purchased it, you can use a refinance loan to access that extra value and turn it into cash for unexpected bills, college expenses, or to start a business.
The Refinance Process
A typical refinance usually takes between 2 and 4 weeks. Getting your home appraised is usually where most delays occur, so scheduling a home appraisal right away can help expedite the process. Typically, closing costs range between 1% and 2% of the loan amount, but low-cost and no-cost refinancing options are available.
With so many refinancing options available, it's important to refinance the right way. We're happy to show you all of your options so you can make the best decision for your unique situation.
Lower Monthly Payments
Reduce your payment through better rates or extended terms
Cash-Out Equity
Access your home's increased value for major expenses
Drop PMI
Eliminate private mortgage insurance with sufficient equity
Looking for a Refinance Loan?
Refinancing allows you to redefine your mortgage loan to better fit your current needs. Whether you're looking to reduce payments, consolidate debt, or access your home's equity, getting a lower monthly rate and paying less over the life of your loan just makes sense. Our refinance experts are ready to help you determine if refinancing is right for you.
Refinancing is simply getting one loan to pay off another. It allows you to replace your current mortgage with a new one, potentially with better terms.
Typically, the closing cost of a refinance is between 1% and 2% of the loan amount, including lender fees. You may choose to pay points to lower your interest rate, or opt for a low- or no-cost refinance.
Yes. The general rule is that you need to have a 90% loan-to-value ratio before you can refinance. This means your home should be worth about 10% more than your current loan balance.
Yes. Depending on the type of refinance loan you choose, you can take out cash to use for bills, home repairs, or whatever you might need it for.
A typical refinance usually takes between 2 and 4 weeks. Getting your home appraised is usually where most delays occur, so scheduling an appraisal quickly can help expedite the process.
Not exactly. While better credit scores result in better interest rates, you can still qualify for a refinance with less-than-perfect credit. You'll want to ensure the rate reduction makes refinancing worthwhile.
Stated income/verified assets: Income is disclosed and the source of the income is verified, but the amount is not verified. Assets are verified, and must meet an adequacy standard such as, for example, 6 months of stated income and 2 months of expected monthly housing expense. Stated income/stated assets: Both income and assets are disclosed but not verified. However, the source of the borrower's income is verified. No ratio: Income is disclosed and verified but not used in qualifying the borrower. The standard rule that the borrower's housing expense cannot exceed some specified percent of income, is ignored. Assets are disclosed and verified. No income: Income is not disclosed, but assets are disclosed and verified, and must meet an adequacy standard. Stated Assets or No asset verification: Assets are disclosed but not verified, income is disclosed, verified and used to qualify the applicant. No asset: Assets are not disclosed, but income is disclosed, verified and used to qualify the applicant. No income/no assets: Neither income nor assets are disclosed.
It is the list of settlement charges that the lender is obliged to provide the borrower within three business days of receiving the loan application.
A loan eligible for purchase by the two major Federal agencies that buy mortgages, Fannie Mae and Freddie Mac.
A mortgage larger than the maximum eligible for conforming purchase by the two Federal agencies, Fannie Mae and Freddie Mac.
It is an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., "2 points" means a charge equal to 2% of the loan balance.
This is the process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. A pre-qualification is subject to verification of the information provided by the applicant. A pre-qualification is short of approval because it does not take account of the credit history of the borrower.