If you have been thinking about lowering your current home loan interest rate and overall payment, and/or getting additional cash out of your home, then refinancing with cash-out is a great solution to paying off your existing mortgage and “High” interest rate debt. You can use the additional money for almost any purpose. Debt consolidation often comes with a reduced, little or no increase to your current monthly debt obligation with better terms and simple interest (non-compounding interest).
Our objective is to be the authority and trusted source in mortgage loan programs. We can also help you better understand the processing workflow, program, and underwriting guideline information and how exactly we can close quicker than your average broker/loan officer. From start to finish, educating you on the entire loan process: Pre-qualify, pre-approve (sometimes before credit inquiry) application, Initial Disclosures, Conditional Loan Approval (CLA), appraisal, closing, funding) is our highest goal.
Non-QM Mortgages
The majority of our clients/borrowers are self-employed and indulge in a wide array of non-qualified "Non-QM" mortgage programs. Perhaps you found this website in your search for the best fit for your individual needs. If you are Self-Employed, and want to learn more, you should take a look at these Alt Doc programs; Bank Statement Programs, Stated Income Programs, No Doc Programs, Asset Depletion / Asset Utilization Programs, Lite Doc / Reduced Doc Programs.
Unconventional Refinance Loans
Rate & Term reduction and/or Cash-Out Refinance are all viable options to consider.
There is an objective opportunity to reduce your rate and or term (R/T refinance). Taking advantage of improved cash-flow to increase your buying power or substantial overall savings by paying your home loan off in a shorter period may be a prudent decision.
One thing to consider is how old your current mortgage is. The longer you have been paying it, the more principal balance you are paying down with every payment. This is because, with mortgage amortization, the interest is front-loaded. So, you might be better off keeping your current mortgage. However, if your motivation is to reduce your payment, a rate & term could make good sense. There are several factors to consider before making your decision.
Standard Things to Consider Before Refinancing
The interest rate you are currently paying and the length of time you have been paying on it are all important to evaluate.
We offer several types of refinance loans to improve your interest rate and or term depending on your specific scenario. Consider the interest rate you are now paying before refinancing. Compare it to the current market interest rate to see how much you would save by mortgage refinancing. Use our free mortgage calculator to determine your new monthly payments.
Current Interest Rate
Check the current market interest rate by calling us for a quick quote. To get the benefits of a lower rate, you may have to pay fees associated with the loan, unless your lender is doing a no-fee loan. Before committing to a refinance, be sure you have discussed the fee options with your loan officer.
How Long will you Live in your House
To get the benefits of a lower rate, you may have to pay fees associated with the loan, unless your lender is doing a no-fee loan. When you are considering paying points to buy down your interest rate, consider how much money you are saving on a monthly basis and divide that by the cost of the loan. This will tell you how many months it would take to re-coop the cost of the new loan. Shorter the better, but if you are planning on being in the home for a while, a good rule of thumb, is to keep your cost break-even time at under 3 years.
Consolidation
If you have several outstanding bills, you may want to consider refinancing your home and using the cash to consolidate and pay off your other high interest rate debts. The monthly savings could be substantial. Using the equity in your home may be accessed through cash-out Refinance. We can help you evaluate the potential benefits and qualifications necessary for a new home loan.