Refinance Your Mortgage Today
Two of the main reasons why people decide to refinance their home is to save money on their current mortgage or to take out money using their home’s equity value. But refinancing can do a lot more to help your financial situation. Refinancing is when you obtain a new mortgage to lower your interest rates, consolidate your debt, reduce monthly payments, or reduce the term of your current loan.*
Typically, people refinance when they have built equity in their home. Equity is the difference between the amount owed to your mortgage company and the monetary market value of your home. Your equity can increase as you make payments or as the property value appreciates. For example, if you owe $150,000 on your home but it is worth $250,000, then you have $100,000 of equity in your house.
The requirements to refinance vary depending on your lender and the nature of the loan program, but will be similar to when you obtained your first mortgage. Most loan products offer refinancing options with a variety of requirements and benefits. One of our Licensed Mortgage Loan Originators will consider your income and assets, credit score, other debts, the current value of the property, and the amount you want to borrow. In order to qualify for a refinance, the transaction must benefit the consumer. Contact one of our Licensed Mortgage Loan Originators to see if you may qualify for a refinance loan by clicking here.
Our Mortgage Loan Originators will help you:
Refinancing can be a great option for some individuals and families. Our Mortgage Loan Originators will help you decide if refinancing is a good option for you. They will take into consideration what the current interest rates are and your current financial situation. Rest assured that at the end of their evaluation, you will know if refinancing makes sense for you, and if so, which product would be the most beneficial.
There are a range of loan products for refinance loans just as there are for purchase loans.
The right strategy for you depends on 4 main factors: the current value of your home, current rates and programs, your financial situation, and how long you are planning to stay in your house.
One of our Licensed Mortgage Loan Originators will determine which product and strategy will be most beneficial to you given your financial situation.
NFM Lending will order an appraiser to evaluate how much your home is worth. Your Mortgage Loan Originator will take that number into consideration when determining what refinance product suits you.
If you have a question at any time, please email us at email@example.com
or call us at: (888) 233-0092.
If you’re ready to get started on a refinance loan, click here to complete a pre-qualification request.
* Not all benefits will be available to all consumers.
A Refinance Product That’s Right for You
NFM Lending offers a variety of refinance loan products, many of which are similar to our purchase loan products. Our Licensed Mortgage Loan Originators will work closely with you to help guide you through the refinance process—making sure you have everything you need to make an informed decision, and to meet your short and long-term financial goals.
Below are some of the mortgage loan programs we offer. Please click here to learn more about each program, and about other programs we offer.
A conventional, or conforming mortgage adheres to the guidelines set by Fannie Mae and Freddie Mac. The loan may have either a fixed or adjustable rate. Fixed-rate mortgages have a set interest rate for the entire length of the mortgage term. An adjustable-rate mortgage (ARM) is usually initially fixed for a set period of time, followed by periodic adjustments according to a specific benchmark.
NFM Lending is an FHA Full Eagle Lender, which allows us to underwrite government loans. FHA mortgages are loans that are insured by the Federal Housing Administration (FHA). Popular among first-time homebuyers, FHA loans are designed for low-to-moderate income consumers. FHA loans typically have a more relaxed credit requirement than conforming loans. There is also a down payment requirement as little as 3.5% available with FHA loans. These loans can only be made for a consumer’s primary residence. FHA allows for “cash-out” refinances up to 85% of a home’s value.
NFM Lending is a Veterans Affairs (VA) approved lender. VA loans are guaranteed by the United States Department of Veterans Affairs. These loans offer long-term financing to eligible American veterans. VA loans often do not require a down payment and offer up to 100% on the purchase or refinance (rate and term only) of a home. VA also offers “cash out” loans up to 100% of a home’s value.
HARP stands for “Home Affordable Refinance Program”. This program allows people who have home loans that have been guaranteed by Fannie Mae or Freddie Mac on or before May 31, 2009, with little or negative equity to refinance and take advantage of the current low interest rates. NFM Lending offers HARP loans for homeowners that owe up to 150% or more than their home is worth (LTV ratio). HARP loans are available for primary residences, second homes, and investment properties.
NFM Lending is a United States Department of Agriculture approved lender. USDA loans are guaranteed by the United States Department of Agriculture (USDA). These loans (also known as Rural Development loans) are designed to help low-to-moderate income consumers purchase homes in rural areas. Similar to VA loans, USDA loans often do not require a down payment and provide up to 100% financing for a home purchase or refinance (rate and term only if existing home is insured by USDA). USDA does not allow for cash out loans.
Loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac are known as Jumbo loans. This loan is a great way to finance high-priced homes, up to 3 million dollars. Check out the current FHA loan limits here.
Home Improvement loans are used to fund renovations and repairs made on homes. These loans can be made on a consumer’s primary residence, second home, or investment property, without the need of a second mortgage. The LTV is based on the after completion value of the home.
Refinancing Made Simple
The steps to getting your loan refinanced are very similar to those of a purchase loan. You can refinance your home in 4 easy steps. Your Mortgage Loan Originator will help you determine if refinancing is right for your current financial situation.
Your Mortgage Loan Originator will help you find the best refinance product and strategy for you. If you’re ready to get started on a refinance loan, click here to pre-qualify today!
The first step is to determine what type of refinance loan you are seeking. Whether you are refinancing your current residence or an investment property, a Mortgage Loan Originator can help you decide between the many loan programs we offer and you are eligible for. Click here to see a full list of the mortgage loans offered by NFM Lending.
To apply, you must submit the names, social security numbers, and the monthly income of all applicants, the subject property address, and the estimated value of the property being refinanced. During the application process, the amount of the loan and the down payment are determined by you. At this point, we will determine if you are eligible for the loan you seek.
Below is a list of all the documents that will be requested by your Mortgage Loan Originator for review:
- Proof of employment (written verification documenting a full two years of work)
- Proof of income (pay stubs for the past 30–60 days)
- Proof of income from another source (if applicable, applicant must submit three years’ documentation of social security, disability, pension income, alimony, or child support)
- W-2 forms and tax returns from the past two years
- All current mortgage information and a copy of the original note
- Bank information (account numbers, branch address, and bank statements from the past 2–3 years
- Proof of payment history on present mortgages
After you submit all of the documents, your Mortgage Loan Originator submits them to Processing. A Loan Processor puts all the borrower’s items together, orders a title search, helps schedule an appraiser to determine the value of the property, and then sends the application to Underwriting. During the Underwriting process, the Underwriter determines the degree of risk involved with lending money. Here are the “Four C’s” that are evaluated in Underwriting:
- Credit: A credit report is obtained from each of the three credit bureaus—Equifax, Transunion, and Experian. These reports are analyzed to determine how well a consumer manages debt.
- Capacity: Capacity is a consumer’s ability to make payments on the loan. The consumer’s employment and income is evaluated along with their current debt and assets (debt-to-income ratio).
- Collateral: When looking at collateral, the lender evaluates the type of property, value of the property, and cost. To determine the value of a piece of property, an appraiser is sent to analyze various factors.
- Capital: The money you have available in savings or bonds.
Once the Underwriter grants approval, a clear to close is processed and the settlement date can be scheduled.
The closing on a loan is where all the necessary paperwork is presented and signed by both the sellers and the buyers. For most transactions three business days prior to closing, you will receive a Closing Disclosure (CD). The CD will contain all of your closing costs and factor in any down payments, credits or gift funds providing on the loan transaction. At closing, the title of the property is transferred to the buyer, an escrow account is set up, the amortization schedule is issued, funds are obtained by the buyer, and the security interest of the lender has been recorded by the County or City Clerk.
Once a loan is closed, it splits onto two different paths: the lender’s path and the consumer’s path.
On the lending side, a mortgage loan can either remain in a lender’s portfolio or enter the secondary market. In the secondary market, loans are sold by lending institutions to private and public investors such as Fannie Mae and Freddie Mac to be sold as mortgage backed securities. The secondary market allows lenders to replenish cash reserves so that they can originate more mortgages to consumers.
On the consumer’s side, the consumer makes payments on the loan following an amortization schedule.