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PostHeaderIcon Seller Mortgage, Refi Rate & Refinance Fee

Seller mortgage is also known as a land contract.  Seller mortgage is when client buys a home and directly makes the monthly payments to the seller instead of a bank. The buyer gets financing from the seller instead of going to a mortgage company or a bank. This can be beneficial because then you can discuss interest rates that aren’t available at banks. This is also good because the seller has a buyer and also some type of income. At the same time, this can also hurt the seller. If a seller is going to do this with a buyer the seller should own the property free and clear, just in case the buyer defaults on a monthly payment. Should this happen it will come back and hurt the buyer financials, and credit.

Refi rates are the rates that a borrower is offered when they are looking to refinance. Rates are what a lender’s yearly price for the borrower to obtain a loan. Refi rates depended on a few different things some being, loan to value, credit score, and also their income. Other things that matter on the rate are what type of loan a client is trying to get being an FHA or Conventional and how long are the terms going to be for. Rates can change from month to month or week to week even day to day but always stay relatively close. When a borrower wants to refinance their current mortgage their goal is to get a lower rate and lower their payments. Rates on a refinance can be very beneficial if they lower than your current rate, it can help make your monthly payments much easier. The borrowers who are able to obtain the lowest rates are the ones with equity in their home and also great credit.

When a borrower is trying to refinance there are some refinance fees. There are many different types of refinance fees. Some of these fees consist of lender fees, third party fees, and pre-paid items. Pre-paid items are not typically known to be fees these are items you pay regardless of refinancing or not. Pre-paids include the borrower’s taxes and insurance of their property. Lender fees are origination, points, application, credit report and appraisal. Third party fees are also part of a refi they are closing costs, title, and title insurance. Refinance fees can usually range from two to six percent of your loan amount. If a borrower is looking into refinance their current mortgage, they can ask the loan officer for a good faith estimate. Also once a certified real estate appraiser does an appraisal and there is enough equity in the home the borrower can role the refinance fees right into the loan.

PostHeaderIcon Refinance Payments & Refinance Questions

Refinance payments are the payments you will be making once you are done doing a refinance. Monthly payments can be reduced a great deal once a refinance of the mortgage is done. Since the mortgage payment is most likely the largest monthly payment you will have, it’s a good idea to keep it as low as possible. If a refinance is going to increase your payments it may because you changing the life of loan. Meaning if before the refi you had a thirty year loan and then after you do a refi you change it to a fifteen this may increase the payment since you are cutting the loan life in half.

A question one may have in should I refinance my mortgage? This question is one that many people have. The answer to this is yes and no, it all depends on the situation that one is in. You would want to refinance if your monthly payments are becoming too difficult to make. Also another good reason to refi is to cash out money for home improvements or other various things. One may also want to refi to pay of some other debt, like credit cards, car payments, etc. A reason when one shouldn’t refinance their mortgage is when they are only going to be saving under a hundred dollars a month. This will cause your loan amount to go up.

Some refinance questions that a client may have are, how much closing costs? This question can be answered once an application is done, but a company can give you an estimate on how much they may be. Another question may, how much is my house appraised for? This question may be answered once a certified real estate appraiser does an appraisal of the property. Another question will be how long the life of my loan is? This depends on the length a borrower wants; it can range from then year to a thirty year. How much is loan amount going to go up? The answer to this question may vary depending on how much money the borrower is cashing out, or how much debt he consolidating and also if the client want the closing costs to be rolled into the loan. Any type of refinance question can and will be answered by a licensed loan originator when you call a company.

PostHeaderIcon Refinance Mortgage & Mortgage Borrow

Explaining a refinance morgage is simple; a refinance means to pay off an existing mortgage loan and take out a new mortgage loan with a lower interest rate. Refinance mortage is a way for a client to get lower interest rate, consolidate their debt, cash into their equity. To refinance a mortgage there are a few things that come into play. These are the borrower income must be able to support to the loan; meaning is debt to income ratios must be under a certain amount for the loan to go through. Another is that the value of the home must be there. To know if the value is their certified real estate appraiser must do an accurate appraisal of the property. This is an important in a refinance because the lenders want the LTV under a certain number. Also if a borrower want to cash out the LTV is very important. Also if a borrower refinances and doesn’t own more than 20 % of their will be PMI. PMI is private mortgage insurance which is by lender just in case the borrower defaults on the loan.

Mortgage borrow is the money a client borrows from a bank or a lender. How do banks or lenders know if you are eligible to get a loan? There are many factors; they go off your income, credit score and also how much debt you have. The debt is based on something called debt to income ratio (DTI). The DTI is broken down into the front end and the back end. The front end ratio is how much of the borrowers income goes towards the mortgage payment. On average you don’t want your total mortgage including interest, taxes and insurance to be more than 32% of your income. The backend ratio is the borrower’s gross income and what is required to pay all the debt combined. The DTI is a good indictor of how much your income can qualify for.

PostHeaderIcon Refinance Money & Refinance Payment

Refinance money is money that a borrower gets once they tap into their equity or if they have to come in with money at a closing.  When a client needs to come in with money at the time of the closing it means that either they wanted to pay closing costs up. Also if the property appraisal didn’t come in with enough value the borrower with have to come with some money. Another reason that a client may get money is if they cash out equity out of their home. This means that a borrower may take out some money if they don’t owe more than the house is actually worth. Refinancing your home and cashing out can be beneficial to be paying off a second mortgage or to due any updates to the home.

Mortgage FAQ; A mortgage is a lien on a house that secures a loan that a borrower makes payments every month, for as long as the set terms. A mortgage is a guarantee that you will repay the money that was borrowed to buy your home. Mortgages come in many different terms each with its advantages and disadvantages. When thinking of taking out a mortgage loan you should ask yourself some questions; like am I in a good financial standing to take out a long-term debt? Can I afford a large payment every month? If you already have a mortgage loan one of your thoughts maybe should I refinance my home mortgage. A refinance is when a borrower is paying off an existing mortgage with a new mortgage loan for a lower interest rate. A refinance can be beneficial if a client needs to lower their monthly payments. Another reason why it can be beneficial consolidates debt or even cash out a little equity.

Refinance payment is the payment you will be making once you are done doing a refinance. Monthly payments can be reduced a great deal once a refinance of the mortgage is done. Since the mortgage payment is most likely the largest monthly payment you will have, it’s a good idea to keep it as low as possible. If a refinance is going to increase your payments it may because you changing the life of loan. Meaning if before the refi you had a thirty year loan and then after you do a refi you change it to a fifteen this may increase the payment since you are cutting the loan life in half.

PostHeaderIcon Refi Cost, Escrow Refinance & Refinance PMI

Refi costs are when a client refinances their mortgage, which consist of paying off their current loan and sign a new home loan. When a client does this, there are refi costs; refi costs can include settlement costs, titles fees, lender fees, discount points and also loan originator fees. A mortgage company can charge any where from one to two percent loan originator fees. A company may not charge as many costs, but this would mean that they would give you a much higher rate.  If a person decides that they want to have less refinance costs than this would mean their monthly payments would be higher than the client really gets approved for.

An escrow refinance is when a lender holds an amount of some sort for a new escrow balance. An escrow account is an account that is held in the clients name for things like property taxes and insurance premium. A question you may have is why do I need an escrow account? You would want an escrow account if you want the bank that you have the loan with to pay the taxes and insurance for you. If not, then you don’t need an escrow balance with your loan. Most clients like the idea of not having to worry about having to pay their taxes and insurance so they have the lender set up an escrow account.

What is a refinance PMI? PMI stands for private mortgage insurance. PMI is an extra insurance that the lenders have and ask for from a lot of home buyers, where there loan to value (LTV) is not under eighty percent. So when a client does a refinance they need to have their LTV under the eighty mark to get away from PMI. Now if a client is buying a home and do not put twenty percent down this will mean that they will have PMI. The reason for PMI is to protect lenders from a defaulting borrower. Having PMI helps borrowers to have more access to the ownership of their home. The idea of PMI is an increase but the monthly payments will decrease. Do you already have PMI and want to get rid of it. One way to do so is to contact a loan officer and have them do a refinance. Once the process of a refinance is started an appraisal must be done. If the appraisal amount put you eighty percent or lower on your LTV you will no longer have PMI.

PostHeaderIcon FHA, Refinance Appraisal & Refinance Fee

FHA is a mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low to mid income borrowers who are unable to make a big down payment. FHA loans allow clients to borrow up to 97% of their home value. For an FHA loan 3.5% down is what is required when purchasing a home. FHA refi is a great way for borrowers with less than perfect credit to still qualify for a great interest rate. Even though FHA and conventional are somewhat the same, they are still different in the way that their guidelines are a little different. FHA also allows a program called a streamline, this mean that if a borrower is already in an FHA loan they can do a refinance with out all the paper work. The basic guidelines for a streamline are that the client must already be in an FHA loan, they must not be late on mortgage, and also the refi must lower the payments or the interest rate. Also no cash out can be done with a FHA streamline refinance.

A refinance appraisal is done a certified real estate appraiser. An appraisal is an important part of the refinance. The appraisal tells where your loan to value is or also called the LTV. To do a refinance the property must not be upside down, meaning that the property must be worth more than the client owes. When a accurate appraisal is done and a borrower want to do a cash out refi, the appraisal will determine how much they can cash out. All refinance appraisals must be done by a certified appraiser before a client knows if they are a complete qualified.

Refinance fees are fees that one must pay during a refinance. There are various types refinance fees. Some of these costs are lender fees, third party fees, and pre-paid items. Lender fees consist of origination, points, application, credit report and appraisal. Third party fees consist of company closing costs, title, and title insurance. Pre-paid items are not really considered to be closing costs, these are items you pay regardless of refinancing or not. They include your taxes and insurance of your property. As a whole closing costs typically range from two to six percent of your loan amount. When the refinance of mortgage is started you will get an estimate of these costs. Also if there is enough equity in your home, the costs may be rolled into the loan. This would save you from any money coming out of your pocket at the closing. Closing costs also fit into two categories; recurring fees and non-recurring fees. Recurring fees are your monthly payments, your taxes and insurance. Non-recurring fees are points, lender fees, and application fees. All these costs for your refinance can be laid out for you in a good faith estimate which can be requested once your application is complete. Refinance fees are also known as closing costs or anything that is making your loan amount rise. If your loan amount is higher because of closing costs this due to the refinance fees.

PostHeaderIcon How to Refinance

How to refinance a mortgage? Refinancing is a basic term which simply means to finance again. A homeowner interested in refinancing would contact a mortgage broker or bank to start the process of evaluating their current mortgage plan. After analizing their current financial situation the loan originator would recommend a new loan product that would achieve a homeowners objective whether it be to lower their monthly payments or to lower the years in repaying their loan. Another reason for refinancing is to utilize the equity in your home to consolidate debt or take cash out for improving your home. A homeowner can contact their current lender to inquire about refinancing options to improve their current rate or financial situation. More than half of the mortage loans in the united states are originated by mortgage companies as opposed to banks. A major reason is that when a customer obatins a mortgage loan through a bank it can only receive loan products offered by that particular bank. If a customer obtained a loan through a mortgage broker they have the ability to see what several banks are offering instaed of just one banks guidelines. For example Bank of America will not be able to offer a program exclusive to say wells fargo. A broker dealing with several banks can offer both bank of americas loan products and products offered by any other bank that they work with giving a homeowner or prospective homeowner more options. 

For most people interested in saving money refinancing can be the right option. Refinance house is a keyword commonly used when a borrower wants information on  obtaining a new mortgage loan to lower their current interest rate or change the term of their loan. A commonly asked question is when is a good time for me to refinance my home loan? There are many reasons a refinance can make sense. For example if the currents interest rates are 1 point or more lower than your current rate than chances are you will save thousands of dollars by refinancing. If a borrower has a adjustable rate mortgage than a refinance to obtain a fixed rate mortgage can be a good idea depending on how many years you plan to be in your current home.  As a homeowner if you’re in an interest only loan than refinancing into a new mortgage with principle and interest can help you build more equity. Another reason for refinancing your mortgage is if you are currently paying private mortgage insurance (PMI) and you currently own more than twenty percent of your home you can lower your monthly mortgage payments substanially by eliminating the PMI helping you save money every month. Refinancing your current home loan can mean big savings if your well informed about your options.


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