There are several reasons why you may want to refinance the loan you already have, including:
- Lower monthly payments
- Lower interest rates
- Switching between fixed-rate and adjustable-rate mortgages
- Get access to funds to pay off other debts
- Changing the term of your loan
Our licensed mortgage loan originators will help you consider your options and decide whether you should refinance your existing mortgage.
If you have a high credit score it can give you access to better interest rates and more program options. It determines your ability and willingness to repay your loan on time. Having some credit issues won’t necessarily disqualify you from receiving a mortgage, but it may limit your options or require you to pay more in interest. This scenario can always be refinanced at a later date when the credit score improves and/or the rates are lower.
Once you select a mortgage program, an underwriter at the lender will examine your financial circumstances to determine if you can receive a loan, and what your interest rate will be. Factors that affect this decision include:
- Your credit history
- The market value of your property
- Your debt-to-income ratio (how your income compares to your outstanding debts
Most mortgages require you to pay a portion as a down payment. There are some mortgage programs that only require a small down payment or waive it all together. Speak with your licensed loan originator to see if you qualify.
Closing costs, including title insurance fees, appraisal costs, pre-paid interest, and documentation fees, can be charged in addition to interest on the mortgage. These costs help pay for the work we do for you as an independent mortgage broker. In most cases, these will be paid out of pocket at the time of closing. However, your lender may be able to offset a portion of these costs in exchange for a higher interest rate. We guarantee the best rate in costs to our customers, so you know you won’t overpay for your mortgage.
An appraisal establishes the market value of your home through an independent, unbiased, and qualified professional. It measures your homes against comparable homes in the same geographic area. Since your home is the collateral for your loan, an appraisal is necessary to determine whether it is worth at least as much as the loan you are seeking.
If you are approved for a fixed-rate loan, your interest rate won’t change over the life of the loan. An adjustable-rate mortgage is fixed for a certain period of time, and then will go up or down based on the market. In deciding between a fixed rate or adjustable rate loan, your loan originator will consider how long you plan on staying in your home and other factors, before making a recommendation.
Your mortgage payments can be affected by the amount you need to borrow, the term of the loan, your financial circumstances and credit history. You can get a rough idea about the rates and payments you can expect using our Mortgage Calculator.
When you put an offer in on a home, you will be on the hook for the payment whether you obtain financing or not. While some offers are made “contingent” on financing, this can make sellers nervous that your deal will fall through. If you are pre-approved for a mortgage up to a certain dollar amount, you can assure sellers that you will be able to bring the necessary money to the table and get the home of your dreams.