Why refinance your home mortgage?
With access to the best lenders available in today's market, PrimeSource Funding is your one-stop shop to find the lowest rates, the best terms and lowest overall costs on your refinance. We have many programs available to meet your needs.
Depending on what you owe, even lowering your interest rate by 1/2% could save you thousands of dollars. At PrimeSource Funding, we make the process so easy. We can complete your loan from start to finish in as little as 14 days.
So why wait? Request your Free Loan Evaluation
Are you eligible to refinance your mortgage?
When does it make sense to refinance?
The answer lies in what it can achieve for you the borrower. Depending on the borrower's circumstances, good reasons to refinance could include lowering the interest rate, lowering the monthly payments, reducing the term of the loan (30 years to 15 years), and pulling out cash to pay off high, nondeductible consumer debt such as credit cards.
The bottom line is to look at the total picture of refinancing. How can this be done? The borrower can ask the lender to prepare an analysis to evaluate the options.
The homeowner should also answer the following eight questions before refinancing:
How long does the homeowner plan on keeping the property?
What types of situations are projected in the homeowner's personal and economic future?
Will the cash pulled out be used for a sound reason that makes economic sense?
Are there benefits to keeping the existing loan on the property?
Would a new loan require additional costs of PMI or impound accounts for taxes and insurance that weren't previously required?
How does the proposed loan compare to others based on interest rate, points, closing costs, and fluff fees?
How would a lower interest rate affect the homeowner's tax picture?
If the homeowner does want cash out, which is better for his or her situation: a new refinanced loan or a home equity line of credit?
The reality today is that a home and its equity are most people's largest personal asset and savings account. The homeowner should make changes with the right loan and the right lender, and for the right reasons.
Find out how much equity you have in your home!
Put the equity in your home to work for you.
Fixed Rate vs Adjustable Rate
Your interest rate is set for the life of the loan. This will prevent escalating interest and payments.
Lenders may be willing to keep the loan in their own lending portfolio, thus allowing more underwriting flexibility.
Lenders may negotiate or eliminate certain loan fees.
Lenders may allow co-mortgagor's.
A lender may allow collateral other than or in addition to the real property being mortgaged.
A lender may be willing to finance personal property with the real estate loan, such as appliances and/or furniture.
Appraisal needs to meet only the lender's guidelines (if the loan is held in portfolio) or the secondary market's (if applicable), instead of the strict appraisal standards of the FHA and the VA.
If PMI is required, its premiums are usually less expensive than with ARM programs or FHA mortgage insurance.
For a borrower who may have difficulty obtaining PMI, the lender may self-insure the loan, increasing the interest rate to compensate for any potential loss.
The lender can fund a portion of the closing costs in exchange for a higher interest rate.
Lower interest rates than for fixed-rate mortgages allow the buyer to qualify more easily for the loan or leverage into a more expensive property than he or she could otherwise afford.
Rates adjust based on increases and decreases in the particular index used, which is a gauge of inflation in the economy. This creates and equitable situation for lender and borrower alike because the lender's costs are covered, while the borrower's wage increases cover the rise in payment amounts.
A variety of indexes are available on which to base the ARM.
The borrower can choose from various adjustment periods, such as six months, one year, three years, five years, or ten years.
Some ARMs can be converted to fixed-rate mortgages during a specific time frame in the loan.
Initial lower-than-market "teaser" rates may drastically reduce the borrower's monthly payment in the first year of the loan.
Some lenders keep ARMs in their portfolio, allowing the buyer to request special concessions of the lender, such as no PMI or no reserves account for taxes and insurance.
Adjustable-rate mortgages are good to use in times of low inflation as well as for short-term ownership.
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