Some of the most frequently asked questions about refinancing include:
It may be, particularly if you intend to stay in your home for a long time. You can use our mortgage calculator to see how much you will save by refinancing, but in most cases any decrease in the interest rate is a good thing. Switching from an adjustable rate to a fixed rate, even if the rate is slightly higher, is also an advantage because your monthly payment will never change from that point forward.
In many cases, refinancing can eliminate the expense of private mortgage insurance (PMI) from your loan, particularly either of these two conditions are met: 1.) You have earned at least 20 percent of equity in your home (this can be met through appreciation or paying down your mortgage), and 2.) You qualify for one of our new, high loan to value (over 80%), no monthly mortgage insurance loan programs.
The “rate” is the mortgage interest rate, while the APR is the annual percentage rate that adjusts the mortgage interest rate to reflect estimated closing costs. This rate includes points paid at closing and mortgage insurance. Because of the Truth in Lending Act, we are required to provide the APR to our refinancing customers; and because we are committed to providing quality customer service, we do this anyways.
Writing a refinance loan that exceeds the amount a home is worth is not recommended, as it is one of many unethical options offered by subprime lenders that contributed to the collapse of the lending industry in 2008. Home Loan Solutions is committed to only offering ethical, top shelf lending options to our borrowers.
In most cases, yes. Mortgage brokers are providing a valuable service to home buyers and are entitled to be compensated for providing that service. In most cases, our compensation is not paid by the borrower, but by the originating lender. Please contact Home Loan Solutions today and we can explain this in detail.
For more answers to your refinancing FAQs, contact Home Loan Solutions today. We look forward to answering any questions you have about refinancing.