If you’re thinking about refinancing your Detroit, Michigan home, or you’re already in the middle of refinancing your Cleveland, Ohio residence, there may be a few things you’re unaware of. Unless you’re an experienced home loan advisor like those from Signature Mortgage Corporation, then chances are that you have a few concerns about the process. Queries about refinancing costs, paperwork requirements and eligibility are not uncommon and should be posed if you’re unsure about what you’re getting into. Fortunately for you, Signature Mortgage Corporation of Canton, Ohio is used to receiving refinance questions from homeowners all over the Akron, Ohio area. Knowing the most commonly asked questions, this local mortgage bank makes it easier for you to get the answers you need and the refinancing savings you want.
So, what is the first question that most homeowners ask when talking to a home loan advisor from Signature Mortgage Corporation? The most basic one—whether or not they should refinance. This seemingly simple refinance question is actually more complex than you would think. After all, the answer depends on your particular situation, not anyone else’s. However, despite your reasoning for wanting to refinance your Cleveland or Detroit home, Signature Mortgage Corporation can give you a quick guide to judge whether or not it’s the right decision for your family.
Should I refinance?
To determine whether or not it is a good idea for you to refinance, you should look at your specific situation and your motivation for refinancing. The most common reasons to refinance are to reduce your rate and/or payment, convert from an adjustable to a fixed rate, or pull cash out of your equity to consolidate debt or improve your home. If your objective is to reduce your rate and payment, you should review your current interest rate and see how much you can save with a 0 point loan and then determine if it makes sense to pay points to reduce your rate further. If you are converting your adjustable rate into a fixed rate, you may actually see an increase in your rate and payment but you’ll get peace of mind knowing your rate will never increase again. If you are using the equity in your home to consolidate debt, your overall loan balance and payment may go up, but you will save monthly because you will eliminate the monthly obligations that you are paying off. A Signature Mortgage banker can run some numbers for you and help you determine whether or not refinancing makes sense for you.
Source: Signature Mortgage Corporation
When it becomes clear that refinancing is something you want to proceed with, you may start thinking about refinancing savings. Are there any available if you opt to refinance your home? How much can you expect? Is it worth it in the long run? These are all refinance questions that you’ll want to ask one of the trustworthy home loan advisors at Signature Mortgage Corporation. If refinancing your current residence will cost you more instead of allowing you to save, they’ll tell you that it may not be your best option at this time.
How much can I save if I refinance?
Every situation is different. It depends on what your current interest is and what your motivation is for refinancing. If your current rate is higher than what is available in the market, it probably makes sense to refinance. To get an idea of what you could save by refinancing, check out the payment savings calculator and input numbers specific to your situation or call one of Signature’s licensed mortgage bankers for some expert advice.
Source: Signature Mortgage Corporation
If this isn’t the first time you’ve refinanced your home, you may wonder if you’re able to do so again. As many individuals throughout the Akron area choose to refinance with Signature Mortgage, this local mortgage bank can assist you with this more involved course of action. They’ll even work with your other lenders to streamline the process.
What if I have a second mortgage on my home? Can I still refinance?
Typically, any second mortgages are paid off through the refinance. Signature Mortgage will consolidate both loans into one new first mortgage and you will only have one payment each month. If you’d prefer to keep your second mortgage intact, they may be able to ask your second mortgage lender to remain in second position and allow Signature to refinance the first loan. This process is called subordination and there is typically a fee charged by the second mortgage lender.
Source: Signature Mortgage Corporation
Those worried about eligibility will greatly benefit from Signature Mortgage’s expertise. If you’re unsure as to whether or not you’re allowed to refinance, going straight to the source is your best bet. Since this is also depends on your individual situation, talking to a home loan advisor will provide you with the most detailed response.
Am I allowed to refinance if my property value is less than what I owe?
There are options that may allow you to refinance your loan even if the value of your home is less than what you owe. Call and speak with one of Signature’s mortgage bankers to see if you qualify for one of their programs.
Source: Signature Mortgage Corporation
Along with refinancing savings, the majority of homeowners who come to Signature Mortgage of Canton are concerned with refinancing costs. Since the refinancing costs involved can have a major impact on your decision, it’s in your best interest to get an estimate before delving into the task. However, Signature Mortgage gives you a general idea of what costs you can expect to pay before you meet with them.
What are the costs associated with refinancing?
Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These fees include 3rd party fees such as credit report, title, escrow, notary, and recording fees. Other fees include the appraisal fee and lender fees such as processing and underwriting. If you are paying points to lower the rate, the cost of each point that you pay equals 1% of your new loan amount. Aside from the closing fees, there will be prorated pre-paid costs for items such as property taxes, interest, and homeowners insurance (if applicable). If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.
Source: Signature Mortgage Corporation
As there is a certain amount of paperwork involved with refinancing, you may want to make a list of what is required of you. While the task of collecting all of the necessary documentation may seem overwhelming, Signature Mortgage Corporation makes it much easier to remember. Simply make a note of the documents they mention below.
What type of documentation do I need for refinance?
Standard documentation collected for a refinance transaction includes information regarding your income such as pay stubs covering the most recent 30 days and W-2s for the last two years, asset information such as bank or mutual fund/stock statements covering the last 60 days and current loan information such as your most recent mortgage statement and homeowners insurance declarations page.
Source: Signature Mortgage Corporation
Last but certainly not least, many homeowners are worried about poor credit backgrounds and whether they qualify for refinancing. While credit scores do have a significant impact on refinancing eligibility, there are some exceptions. For example, Signature Mortgage Corporation has a number of programs available for those with less than perfect credit.
Can I refinance with bad credit?
Depending on the reasons why your credit is imperfect, there are great loan options available including government programs. Call and speak with one of Signature’s mortgage bankers to determine whether or not you qualify for one of their programs.
Source: Signature Mortgage Corporation
As you can see, there are several refinance questions that you should be asking before you apply for this type of home loan. Thankfully, Signature Mortgage Corporation’s home loan advisors can answer them all for you. To learn more about this Akron, Ohio area company, visit their website at www.smcinc500.com. If you’d like to speak to one of their bankers about refinancing savings and refinancing costs, give them a call at 800.241.1996. If you’re located near the Detroit, Michigan or Cleveland, Ohio area, you can also take the trip to their office to meet in person.
Signature Mortgage Corporation
4790 Douglas Circle NW
Canton, Ohio
Ph: 800.241.1996