When Refinancing Makes Sense
There are many potentional benefits to refinancing. Let Loan City help you weigh those benefits against any upfront costs or added risks.
Refinance Education 101
The information you need to decide if refinancing is right for you
Lower your monthly payments
A lower mortgage payment means more money for everything else in your life.
Pay off your mortgage faster
15 year fixed mortgages are more popular than ever. They come with lower interest rates and save you thousands in interest. Use that money for the things that really matter.
Use equity to pay down bills while lowering your rate
A Lower mortgage payment means more money Use the equity in your home to pay down debt, make home improvements, pay for a child's education, or cover other expenses.
Ditch that adjustable-rate and get into a fixed-rate
If you are currently in an adjustable rate mortgage (ARM), you might want to consider switching to a fixed rate mortgage, thereby avoiding future changes in your interest rate and payments.
How To Prepare for Your Refinance
Before you get started it's a good idea to be prepared. Here's a list of things to do to get ready to refinance
Homeowners who are well prepared for refinancing boost their chances of finding a money-saving deal.
Define Your Refinancing Goals
Do you want to lower your payment, consolidate your debt, borrow at a lower rate, etc.
Get an idea of the value of your home
Talk to your local Real Estate Agent or try websites like Cyberhomes or Zillow to help you determine a ballpark idea of what your home is worth.
Understand the details of your current mortgage
When refinancing, your goal should be to purchase a better deal than the one that you have. Therefore, take account of your current interest rate, length of mortgage and monthly payment amounts.
Familiarize yourself with your current debts weighed against your income
Along with credit score, debt-to-income ratio is another qualifying factor lenders use. Debt-to-income ratio (abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts.
Check your credit
Get a copy of your credit report several months before applying to refinance to identify any errors that could affect your credit. The higher your credit score, the more options you'll have and the lower your interest rate will be. Go to www.annualcreditreport.com and get your free credit report.s.
Keep track of your paperwork
Organize your paperwork so that you have everything ready for your mortgage refinance. For example, you will be asked for copies of your paystubs, bank statements, tax returns, w-2s, current mortgage statement & property insurance.
The Loan Process Explained
Our process is designed to keep your loan application on schedule for a smooth closing. As we hit the major milestones during the process our staff will keep you updated.
Loan City Mortgage 5 Step Process to Refinancing
A Loan Application is taken which, includes a credit report being ordered and documentation collected to start the approval process.
Your loan is underwritten
An Underwriter reviews the loan package and issues a formal loan approval. This approval will include any additional items needed for loan docs.
Loan package is assembled
Each borrower is unique and we understand that. All the provided documentation and reviewed so that any potential obstacles are addressed upfront to ensure a smooth approval process.
Loan Documents are prepared
Loan docs are prepared and sent to your Escrow Officer. A signing is scheduled and docs are sent back after the Lender your signing is completed.
Getting your home appraised
Home appraisals are generally required to ensure that the home is worth the amount of money it's being refinanced for. Loan City will order the appraisal and review it with you. Afterwards, your appraisal is yours to keep.