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.

Refinance Basics►

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.

Cash Out Refinance ►

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.

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 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.

Loan City Mortgage 5 Step Process to Refinancing

Loan Application

A Loan Application is taken which, includes a credit report being ordered and documentation collected to start the approval process.

Loan Document Checklist►

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.