Refinance home loan rates refinance home mortgage

 

  15 Things They Don't Want You To Know When Refinancing Your Home Loan
  Find out how to protect yourself, your credit and your money when seeking to refinance your home loan.



Table Of Contents:

   Lender Secrets:
   15 important facts they don't want you to know when refinancing your home.
   How to interview lenders and brokers
   Bargain Loan shopping tips to live by
   Know Your Rights
   Plus Free Bonus Tips Tools and Resources!


Lender Secrets:
15 Important Facts They Don't Want You To Know When Refinancing Your Home Loan


  1. You have a right of rescission.
  2. Rates change daily and can drastically alter the cost of a loan. 
  3. You have an option to lock-in rates up to 60 days.
  4. Fees vary from lender to lender so shop around
  5. You can Interview your lender before they interview you
  6. Lenders should have a list of references or current satisfied customers at your request
  7. You are not obligated to a loan just because you filled out an application
  8. You should screen all initial contacts by lenders and brokers using the Better Business Bureau and Mortgage Broker Associations
  9. You protect your credit score by accepting a loan shortly after application. 
  10. Don't accept the first offer you get.
  11. You can negotiate fees
  12. No money down loans are not necessarily money saving deal. 
  13. No cost applications are not what they may appear to be. Expect fees at closing. 
  14. Regardless of fees waived keep your eyes on the interest rate and points.
  15. When doing a “cash out refi,” don’t raise the level or debt you have unless you’re doing home improvements. If you do, you are at a higher financial risk and credit card companies may increase your rates.


   Mortgage Refinancing Preparation Checklist

Documents Needed:

  • Social security number(s)
  • Name and address of all employers from the last two years with dates of employment
  • W-2 forms for the last two years
  • Paycheck stubs covering the most recent months pay
  • Bank statements for the previous two months.   Also include institution name, address, account number(s) and balances for all accounts.
  • Account number(s), balance(s) and monthly payment(s) for all outstanding creditors:  i.e., credit cards, car loans, student loans, signature loans, etc.
  • Previous addresses for the past two years.
  • Make and year of each automobile owned or leased, and current market value if owned.


Other Information That May Be Required:

  • If you are divorced:  a copy of complete divorce decree along with any amendments.
  • If you pay alimony or child support: a "friend of the court" letter saying payment amount and showing the account is current or 12 months cancelled checks if paying directly to recipient.
  • If you are self-employed, employed in a family business, a tradesman, your income is based on commissions or you own rental property:  You need tax returns for the past three years complete with all schedules, and a signed year-to-date profit and loss statement.
  • If your present home is for sale or sold:  a copy of the listing, purchase agreement or closing statement
  • If you have been renting during the past year: a list of names and addresses of all landlords (12 months cancelled checks will expedite your loan process).
  • If you have had a mortgage or land contract within the past year:  provide the name, address and account number of lender (12 months cancelled checks will expedite your loan process).
  • If liquidating savings bonds or stocks for closing:  provide proof of ownership. 
  • For stocks:  photocopy of most recent stock ownership statement or photo copy of stock certificates.

    If You Are Refinancing:

    • Copy of your current homeowners insurance policy showing dwelling coverage, annual premium and renewal date.
    • Property tax statement
    • Exact mortgage balance and escrow balance for current mortgage(s).
    • Owner's title insurance policy
    • If refinancing a land contract:  a copy of the land contract and address of land contract holder.
    • he most recent months pay
    • Bank statements for the previous three months.   Also include institution name, address, account number(s) and balances for all accounts.
    • Account number(s), balance(s) and monthly payment(s) for all outstanding creditors:  i.e., credit cards, car loans, student loans, signature loans, etc.
    • Previous addresses for the past two years.
    • Make and year of each automobile owned or leased, and current market value if owned.

     

 




  How to interview lenders and brokers

  1.
To interview lenders ask these important questions?
  2.  How long has your company been in business?
  3. Where are you located?
  4. Are you a member of the Better Business Bureau?
  5. Are you a member of the Mortgage Broker Association?
  6. Are you an Equal Housing Lenders?
  7. Do you provide flexible fee programs?
  8. Do you provide incentives?
  9. Do you consider yourself a consumer oriented service?
  10. Will you follow up with all my call and questions?
  11. Will you answer all my questions in a timely manner?
  12. Do you have a list of references of satisfied borrowers I can contact?



   Bargain Loan shopping tips to live by

  • The greatest potential for lower settlement costs arises where the current lender was the originating lender
  • Refinancing means taking out a new mortgage with a lower interest rate to pay off your existing mortgage.
  • With the advent of low and no-cost refinancing, it's no longer as important to see if you're going to stay in the house long enough to pay back the refinancing costs.
  • In a traditional refinance, insist on a good-faith estimate of the costs up front, before you give the lender a penny.
  • Before you refinance, check your credit report for anything that could foul up a refinance. You don't want to lay out the money if a credit problem is going to keep you from refinancing.

     



   KNOW YOUR RESCISSION RIGHTS


If you don't like the fees and rates printed on closing papers, consider starting over. You have three business days from the date of closing. If you decide to reject the deal, you must notify the lender in writing within the three-day period. The lender then has 20 days to return your fees.

Although loans tend to close in a timely manner you still want to do all you can to help it along.  When asked to provide information by the lender give that information as accurately and as quickly as possible. Document everything that has happened to show that you have completed all of your tasks in a timely matter. By doing this you show that you cannot be held responsible for slow loan processing and are entitled to the mortgage rate you agreed to. If you are worried that your lock-in  is going to expire start a paper trail  and show the lender who really  was at fault.



Mortgage Glossary

Annual interest rate: Annual interest rate. Maximum interest rate is 20%.
Mortgage length (years): Total length, or term, of your original mortgage in years. Most common lengths are 30 years and 15 years.
Original mortgage amount: The original amount financed with your mortgage, not to be confused with the remaining balance or principal balance.
Additional monthly payment: Your proposed extra payment per month. This payment will be used to reduce your principal balance.
Scheduled payment: Monthly principal and interest payment based on your original mortgage amount, term and interest rate.
Accelerated payment: Scheduled payment plus additional monthly payment.
Total savings: Total amount you would save in interest if you made the accelerated payment until your mortgage was paid in full.

 


   Mortgage payoff calculator: Find out how much interest you can save by increasing your mortgage payment.

Mortgage Payoff Calculator


   Loan Application Worksheet

Use this worksheet to prepare to answer typical questions that appear on the loan rate quote form. 
This form does not save. Highlight and print when completed

             New Home Current Home
            Purchase Refinance        Home Equity
         
1. What type of home do you own?
2. When did you purchase this home?
  
3. Please estimate your home's current value:
4. The loan balance on your 1st mortgage is:
5. How much additional cash do you wish to borrow?
6. What is your current monthly payment?
7. What is your current interest rate?
8. Your current mortgage term is:
9. Do you have a second mortgage?
Yes No
9a. If you have a 2nd mortgage, what is the current balance?           
9b. If you have a 2nd mortgage, how much is the monthly payment?  
10.
What is your household's Gross Annual income?  
11. Please estimate your credit history:
  
12. Have you had a foreclosure or filed bankruptcy in the last 7 yrs?
13. Are you self employed?  
Yes No      

Many forms now ask for physical identity and health related information. 
Be prepared to answer the following.
Date of Birth: (mm/dd/yyyy)
   
Gender:
Male Female
Height/Weight:
/  lbs.
Smoking History:
Type of Insurance Coverage:
Amount of Insurance Coverage:
Insurance Coverage Will Be:

Some forms ask about serious health issues. Answers to these questions do not necessarily disqualify the applicant from getting a loan, especially where the second party has no serious longevity or health issues

AIDS
Cancer
Diabetes
Heart Attack
Stroke
Other serious health issues

 


9. Mortgage Rate Search Tools

We surveyed the top Lending Marketplaces online and bring you our five start winners for mortgage rate search tools. 

Criteria: 

  • Better Business Bureau member
  • Equal Housing Opportunity Lenders
  • These marketplaces have successfully processed tens of thousands of mortgage requests using state of the art secure identity protection protocols.
  • Serving the community for over 12 years http://www.refinanceloanrates.fimark.net

 


Bonus: Top lending marketplaces to find bargain loan rates tools and tips

Home Refinancing Loans
Try these top lending marketplaces to shop and compare low interest rates points and loan fees.

 



Refinance home loan rates

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Home Refinancing Toolkit 
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