The Streamline Refinance program allows FHA-approved lenders to refinance current FHA-insured loans to a lower interest rate or to a different type of mortgage (fixed- or adjustable-rate mortgage). Streamline Refinance refers only to the amount of documentation and underwriting that the lender must perform; it does not mean that there are no costs involved in […]
Many refinance loans can take 30-45 days to close but there are lots of exceptions if your finances are complex or you’re refinancing at a particularly busy time of year. There are, however, steps you can take to limit your exposure to delays. Much of the documentation that you’ll need to provide for processing can […]
Your documentation allows underwriters to verify that you’re a good fit for the loan option you’ve selected. Here is a list of some of the most common documents that your loan officer may ask for: Your lender will also need to pull your credit report as a part of the refinance process, so have your Social Security […]
In many cases, yes. As rates have dropped and home values have risen, many homeowners have an opportunity to remove their PMI while reducing their overall monthly payment. Talk to your loan officer about the specific requirements of the loan products you qualify for. Keep in mind that many loans have a ‘seasoning requirement’ that […]
What is a Loan Modification? When a lender agrees to modify a loan, they typically do so because you are facing default. Whether you are already behind or are about to become behind, the lender can modify the terms of the original loan to make the mortgage payments more affordable for you. Lenders aren’t under […]
6-Month CD Rate This index is used in ARM mortgages and is the weekly average of secondary market interest rates on 6-month negotiable Certificates of Deposit. The interest rate on 6-month CD-indexed ARM loans is usually adjusted every 6 months. Index changes on a weekly basis and can be volatile. 1-year T-Bill This index is […]
A reverse mortgage is a type of home equity loan that allows you to convert some of the existing equity in your home into cash while you retain ownership of the property. Equity is the current cash value of a home minus the current loan balance. A reverse mortgage works much like a traditional mortgage, […]
A conventional mortgage is a home loan that isn’t backed by a government agency, such as the FHA or VA. Conventional mortgages often meet the down payment and income requirements set by Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA). Conventional loan […]