Refinance Loan Overview
- Is debt consolidation an option?
- Does the monthly savings justify costs associated with refinancing?
- What does the interest savings over the life the loan look like?
- Can you pay your house off faster by refinancing?
Tell us the loan programs you’re interested in or let us suggest some loan programs for you based upon your financial situation. Choose from 30 year to 15 year loans. We make the the researching phase easy so you can get a combination of the best possible loan terms with a competitive interest rate.
Decide on refinancing options:
- Loan Term: 30 year fixed, maybe a 25 year fixed or even a 15 year fixed?
- Discount Points: discount points versus no discount points cost/benefits?
- Occupancy: primary residence, second home or investment property?
Refinance Loan Q+A
Making a biweekly mortgage payment is incredibly beneficial when considering the longer term interest costs over the life of a loan. It’s not uncommon to be able to shave many years off the payoff time by simply making a biweekly mortgage payment. However as cumbersome as it may be with your servicer, to try to set up that type of payment arrangement- there is an easier way.
Make the 13th mortgage payment per year
Simple enough right? Simply doubling up a payment one month during each fiscal year, effectively that will have the affect on your interest savings and principal balance pay-down as making a biweekly mortgage payment every two weeks.
Put another way…
Make a 13th payment
For example let’s say your mortgage payment is $2500 per month, that’s $30,000 in mortgage payments you make annually.
$2500 ÷ 12=$208.33 per month. If you were to make a payment at $2708.33 per month, that is effectively the same thing as a biweekly mortgage payment or 13th payment each year.
Looking to save money on a new mortgage? Start today by getting a complementary rate quote for your situation. We can even run scenarios for you showing you what the net tangible benefit savings could do by prepaying your mortgage over time.
What you’ll need
- documentation from the Secretary of State showing the business is in fact closed
- an explanation of why the businesses closed and why the business losses were taken
However, if you presently own a business that is still running and you’re taking losses or showing lower income to avoid paying higher taxes which is customary showing larger profits, you could very well run the risk of not having enough income to qualify for mortgage loan you may desire. This is the conundrum if you will self employed borrowers deal with.
On one hand of the spectrum if you show maximum profits you’re going to pay income taxes on those profits, but at the benefit of being able to qualify for a loan substantially more easily. The other option is showing lower profits, lower income which keeps the tax man at bay, but at the expense of risking the chances of qualifying for a home mortgage.
Are you self-employed or own your own business? Been told you can’t qualify for a mortgage? Get a second opinion by getting a complimentary mortgage rate quote for your purchase or refinance today!
Rewind the clock a couple of years. Sonoma County homeowners had very little equity many were even upside down as real estate sales were sluggish and the demand for housing was at an all-time low. Since then homeowners have accumulated more home-equity as a more exuberant economy has emerged.
Jobs are starting to come back, unemployment is continuing to fall and housing demand has increased threefold. Many who didn’t have any home equity before now have a chance to get out of their high interest rate loan or arm set to adjust.
So…should you pay for an appraisal? Yes, so long as you can follow the paper plan. A good lender will want to make sure you can qualify before ordering an appraisal.
Here’s what we mean:
Apply with a mortgage lender first, and provide them your supporting financial documentation for a preliminary qualification review. You don’t want to shell out good money for a home valuation and then have a problem with income later on- granted that could happen anyway, but chances mitigated doing a preliminary qualification review.
Once it’s determined by the lender that you will qualify, then it would make sense to pay for an appraisal and move forward in the loan process.
- Expect an appraisal to be approximately $450-$475 with most lenders for primary homes
- Expect upwards of $650 for investment property mortgages
Considering mortgaging a primary home? How about an investment property or second home? Whichever it is, start today by getting a complementary mortgage rate quote.
On January 10, 2014, qualified mortgages took shape for the entire mortgage industry mandating lenders specifically document of borrowers ability to repay. Because of of these new regulations, if you receive a mortgage quote offering less the normal documentation (such as not needing a pay stub for example) if you are a W-2 wager, or only needing one year of income tax returns among others, this should raise questions.
The first question you would want to ask yourself is “How is this lender able to do something that others cannot?”
Mortgage lenders don’t have a monopoly on the market.
All mortgage money comes from the same place with the exception of portfolio lenders, which are usually local banks and credit unions who have niche products but still have ability-to-repay requirements (and still requires full income documentation.)
Following is the traditional list at the minimum, approved lender would request of you when determining whether or not to approve you for a mortgage:
- Two years of tax returns
- Two years of W-2′s
- Thirty-day pay stubs
- Sixty-day bank statements
Additionally, during the loan qualification process it is essential to let the mortgage lender run your credit report. There’s no way for them to issue a credit decision without a credit report in the name of the lender whom you are applying with. Credit reports are not transferable amongst lenders.
Beginning The Loan Process
- Put together the financials
- Apply with a lender
- Allow the lender to obtain your credit report. (Doing this will allow you to accomplish your main objective which is to determine whether or not the figures are affordable in alignment with your goals and expectations.)
Need a mortgage? Start by receiving a fast mortgage rate quote to purchase or refinance a home, it’s free!
In order to get a mortgage these days, you must be able to support an ability to repay. An ability to repay the debt by virtue of having income to offset the liability is what home lenders look for.
When purchasing a home, plan on providing:
- tax returns,
- pay stubs, and
- bank statements
When refinancing, plan the same with one caveat:
If you refinance with your lender (i.e. the servicer of your loan collecting your monthly mortgage payment), they can from time-to-time originate a new loan for you without necessarily needing financials.
In order to accomplish this feat, you will need excellent credit and an extremely low debt-to-income ratio, as well as a loan to value of 60% or lower.
For the majority of consumers seeking loans, the following information is needed to get qualified:
- Tax returns for the most recent last two years
- W-2s for the most recent last two years
- 30 days pay stubs
- Bank statements for the most recent last two months
- Profit and loss statement if you’re self-employed with year-to-date income