Some of the most frequently asked questions about refinancing include:
Is it worth it to refinance if the lower interest rate is minimal?
It may be, particularly if you intend to stay in your home for a long period of 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.
Can refinancing my home eliminate my mandatory private mortgage insurance?
In many cases, refinancing can eliminate the expense of private mortgage insurance (PMI) from your loan, particularly if either of these two conditions are met: 1) You have gained 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 (LPMI).
What is the difference between the rate and the APR?
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 new TILA/RESPA Integrated Disclosure rule, we are able to provide consumer disclosures that are much easier for you to read and understand; and because we are committed to quality customer service, we will go over each line item on your Loan Estimate and Closing Disclosure so that you understand before you make any commitment.
What is the maximum cash out that I can pull from my home?
This question has a few different answers based on the type of loan that we are doing. For FHA loans, we can take a max of 85% LTV (Loan to Value) of your home. For Conventional loans, we can go up to a max of 80% LTV, and for VA loans we are able to go up to 100% LTV. All loan scenarios are subject to borrower qualifications, and Home Loan Solutions does not guarantee that all borrowers will qualify.
For more answers to your refinancing FAQs, contact Home Loan Solutions today. We look forward to answering any questions you have about refinancing.