A: Yes, you can usually still refinance your home if you have a second mortgage on it. The second mortgage is typically paid off during the refinancing in a process called subordination.
We consolidate both loans into one, newly refinanced mortgage so you only have to deal with one payment each month. If for some reason, you prefer to keep your second mortgage as-is, we can ask that lender if their loan can stay in the second position while we refinance the first mortgage.
A: Absolutely! In fact, many of our clients take advantage of mortgage refinancing to get the cash they need to buy an investment property. Leveraging your equity is a great way to make your money work for you.
A: It usually only takes about 30 days to refinance your home. We’ve created a process that helps us quickly and easily close refinancing loans in a much shorter time frame than the industry average.
We will need you to provide the needed documents in a timely manner. So, as long as you get everything back to us quickly, we can close within about 30 days.
A: Yes, there are refinancing options even if you have bad credit. That said, it really depends on the reason why you have a low credit score. There are some government programs available for people looking to refinance with bad credit. We recommend contacting our loan officers – they will help you figure out which programs you qualify for.
A: Similar to when you first got your mortgage, you’ll need to provide a lot of information and documentation for the process to move quickly.
Common documents needed to refinance include:
- Pay stubs
- IRS Form 4506-T
- W-2s for the last two years
- Federal Tax Returns (1040s) for the last two years
- Bank statements for at least the last two months for all accounts listed on your refinancing application
- Source of funds documentation for large cash deposits, such as selling a car, furniture, or gifts
- Credit explanation letter if you have any negative items impacting your credit history, such as late payments, collections, or judgments
You’ll also need to provide your gross income, the value of each bank account and retirement account, all of your current expenses, the total outstanding balance of all loans on your property, and the reason you’re refinancing or borrowing against your home.
A: When you refinance your home, you will have to pay closing costs and third-party fees such as:
- Recording fees
- Escrow
- Notary
- Credit report
- Title
- Appraisal fees
- Lender fees for processing and underwriting
- Pre-paid property taxes, insurance, and homeowner’s insurance
You can add all of these fees into your new loan if you’ve built up enough equity. Your loan officer can give you a better idea of the cost to refinance your home once they have all of the details.
A: How much money you can save by refinancing your home all depends on your current interest rate and what the available market rates are. It probably makes sense to refinance if current market rates are lower than the rates of your mortgage. While we can’t tell you exactly how much you’d save without knowing all the details, you can check out our calculators section to get a general idea of how much refinancing your home could save you every month.
A: Whether or not you should refinance your home depends on what your financial goals are and the terms of your current mortgage.
For example, if you want to save money by refinancing at a lower interest, you’ll first need to make sure that the current market rates are actually lower than what originally you financed your home for.
Most of our clients refinance to reduce their mortgage rates and save money, switch their adjustable-rate mortgage to a fixed-rate one, or leverage equity to finance home improvements or pay off debt.
It’s best to speak with a licensed loan officer who can help you determine exactly how refinancing could benefit your situation!