There’s no doubt about it: Lenders have tightened the guidelines they use to evaluate loan applications. That means borrowers who want to refinance their mortgage to take advantage of low interest rates may wonder whether they will qualify for a new loan. Qualifying to refinance your home loan depends on several factors. Lenders weigh your monthly income and debt payments through a debt-to-income (DTI) ratio. Conventional wisdom is that lenders want your monthly payment to be under 38 percent of your income. However, some programs are more flexible and allow a larger DTI ratio. Also keep in mind that most lenders will require you to provide proof of your income with recent paycheck stubs, W-2 Forms and federal income tax returns.
You will also need some equity to qualify for a refi. For example, if your home is worth $250,000 and you want to borrow $210,000, your loan would end up being about 84 percent of the value (LTV). Your credit score also can be an important factor in your ability to qualify to refinance your mortgage. Keep in mind that if your credit is impaired, the interest rate and terms you’ll be offered might not make refinancing an attractive option. If you have a strong credit score (and a good track record of paying your bills on time), you’ll likely be offered a lower interest rate and better terms. A refinance may result in lower payments if your interest rate is lowered or if you opt for a longer repayment term or an interest only payment instead of a fully amortized payment.
You can tap into the equity in your home and use it for anything you want or need. To find out if you qualify for refinancing on your mortgage, the best thing to do is pick up the phone and discuss your scenario with one of our trusted advisers. Together, we can help you to decide when you should refinance if now is not the best time.
The best time for refinancing your loan is when it will help you to meet your goals and you can take advantage of the best value. If you are refinancing, you need to consider the timing and whether this the right time to get a new loan. Usually, you have to plan to be in the house for a while for refinancing to make sense. You have to look at the savings and the cost, and then consider: How long am I going to keep this property? When deciding whether to refinance, you should consider how many months of lower payments it will take to recoup any costs of the new mortgage. Call us today so that we can help show you if and when you should refinance. You are not alone in this decision. We are here to help you, so call and talk to us today. In a matter of a few minutes, together we will figure out what makes the most sense for you.
Do You Qualify to Refinance?
There are many good reasons to refinance: to lower your monthly payment, to lower your payment term, to lower your interest rate, and of course, getting cash out is a great reason to refinance as well. Before deciding whether to refinance, you need to determine what you want to accomplish. Debt consolidation is another goal of refinancing. If you have both a first mortgage and a home equity loan, combining the two mortgages into one fixed-rate mortgage levels out the payment over the loan term. We can tell you if you qualify to refinance your mortgage in a matter of minutes.
We can help you to convert your equity into cash very quickly, without the headaches and the red tape. If you’re considering refinancing through a home equity loan or line of credit, the amount of available equity you have in your home plays an important role. Your home equity is the difference between the appraised value of your home and your current mortgage balance(s). The more equity you have, the more refinancing options available to you.
Our team is dedicated to finding the lowest Refinancing mortgage rates. Deciding whether to refinance a mortgage is all about the numbers. Whether you’re seeking a lower monthly payment or lower rate, refinancing now makes sense. Your home may be the largest asset you own. Get the information you need to make informed refinancing decisions by calling our team of experts now.
We are here to help you refinance your home loan quickly and easily. We will work with you to make sure that refinancing is right for you. To learn more about mortgage refinancing and determine if it makes sense for you, call and talk to our team of experts now.
Get Your Lower Rate
Now that you know what it takes to refinance your mortgage, the best thing to do is pick up the phone and discuss your scenario with one of our trusted advisers. If you have bad credit, we may still be able to help you qualify. If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP). Even if you are underwater, you may still qualify for a Refi through HARP. Take advantage of the best time to Refi in decades!
We are here to help you, so call and talk to us today. In a matter of a few minutes we can tell you if you qualify for cash out, a lower rate and a lower payment. Our broker and our trusted advisors are here to meet your goals. Call and have a complete team of knowledgeable experts walk you through the maze of information so that you can obtain the best possible refi today.