Typically, a lender will limit cash-out refinance loan amounts to 80% of your home’s value. To use the same example as before, if your home is valued at $250,000 and your current mortgage balance is $150,000, you could cash-out up to $50,000—because the new loan totals $200,000, which is 80% of $250,000, your home’s current value.

There is a very big difference between being Pre-Qualified and Pre-Approved. A Pre-Approval is based on credit being reviewed along with income and assets having been verified. A Pre-Qualification is simply a phone conversation and the lender says based on what we have talked about-you “should” be able to purchase a property at $X.XX. Pre-Qualifications are pending everything being verified. To put an offer in on a home you should have a written Pre-Approval in hand.

This is a number that is different for everyone and a big part of the pre-approval conversation. During our initial conversations, we will determine what the max you are approved to pay on a monthly basis but most importantly-what are you actually comfortable paying each month? Typically, what you qualify for and what you are comfortable paying are two different numbers. Reach out to one of our mortgage loan officers to determine the right payment for you!

There are several factors that will determine the mortgage payment a person pays on a property. Things like the price of the home, length of the loan, interest rate, how much you put down, credit score, home insurance premiums, and property taxes. Another figure you need to take into account though, not directly in your mortgage payment is HOA dues. Those can apply to certain properties and will be paid monthly along with your mortgage payment.

Perhaps the question that feels most urgent or relevant is this one. You will know the exact amount of your costs well before closing on your loan, but you can estimate the amount beforehand and your loan officer will help you with that.

Closing costs typically range from 2% to 5% of the home’s purchase price. The exact amount depends on various factors, such as the loan amount, location, and specific fees applicable to your transaction.

You can use online calculators and estimates provided by your lender to get an idea of your potential closing costs. However, the final amount may vary based on negotiations and the specifics of your transaction.

If everything goes as expected and well, your new house keys will be delivered at closing. In a scenario where the lender will demand the loan to be funded, you will have to wait till then to have the house keys.

You can refinance your home for a number of reasons, most of which typically result in a more favorable financial situation. Some of the benefits of refinancing include:

Lower your monthly payments: By obtaining a lower interest rate, you may lower your monthly payment – keeping more money in your pocket. Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run. Fees and interest rates need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.

Shorten your loan term: Maybe you’re making more money now than you were when you first got your mortgage and can afford to put more money toward it. By shortening your loan term, you’ll pay off your mortgage sooner. Short term means you’ll pay less interest over the life of your loan. An example would be refinancing a 30-year mortgage into a 20-year or 15-year mortgage.

It really depends upon the circumstances of your case. If your current interest is higher than the prevailing market rate, refinancing makes sense to get that lower rate which will decrease your monthly payment. The exact amount saved will depend upon the difference between the previous and the new interest rates. To find out the savings in your unique situation, contact us now!

Fees associated with refinancing tend to vary from lender to lender, depending on what they charge. However, there are certain costs that are always standard when you refinance. These include third party fees such as title insurance, notary, credit report fee, escrows, and other recording fees. Appraisal and lender fees, including processing and underwriting charges, also apply. If you decide to pay points to lower the interest rates, each point costs 1% of your revised loan amount. Apart from the closing costs, there are other pre-paid costs for interest, homeowner’s insurance, and property taxes involved. If you have sufficient equity in your home, you can easily roll these closing costs into your new loan, paying virtually nothing out of pocket to refinance.

There are multiple loan programs that allow qualified homeowners to take cash out of their primary residence. Typically, lenders will require that the borrower have an above average credit score, full-time employment, and an acceptable equity position in their home.

Your credit history is only one factor in qualifying for a mortgage, so late payments or other credit report blemishes don't necessarily disqualify you. There are a variety of mortgage options to help people with less-than-perfect credit obtain the right mortgage and leave credit challenges behind.