WHEN SHOULD I REFINANCE?/ HOW DO I DETERMINE IF REFINANCING MY MORTGAGE IS THE RIGHT THING FOR ME?
Refinance now and lock in a lower rate! Nowadays there's a new wave of hype about refinancing. But how do you know if refinancing is the right move for you? One thing is for sure, with rates at a historical low, it’s worth taking the time to see what’s best for your specific situation.
That's where 1st Trust Financial comes into play. Our knowledgeable team analyzes in an honest and ethical manor your unique situation, and will help you to make an informative decision.
Below we've listed some reasons for refinancing:
* getting a lower interest rate
* taking cash out for a home improvement, consolidating debt or any other reason the suits your needs
* build up home equity quicker
* adjust from an adjustable- rate mortgage (ARM) to a fixed- rate mortgage or vise versa
* shorten the term of your mortgage
WHICH MORTGAGE TERM IS RIGHT FOR ME?
Freddie Mac's 2016 home buyer statistics, published on April 17, 2017 that 90% of all home buyers opt for a 30 year fixed-rate loan. Did you know that you have more options than to choose between the common 15, 20 or 30 year term for your loan? At 1st Trust Financial we take the time to individually and carefully determine the mortgage term that suits best your needs.
WHAT INFO SHOULD I HAVE AVAILABLE WHEN I'M READY TO APPLY?
The most important thing is that your lender can ensure that you are someone who is able to pay back the money over the life of the loan. Therefore lender will look at a combination of your income, your debt, and how much credit you already have.
Here is what you most likely will need for the application:
* the application itself
* proof of income
* tax returns
* bank statements
* credit report
* your ID
* rent history
* gift letters
* miscellaneous documents, e.g. bankruptcy notices, proof of immigration status, divorce degrees etc. depending on your specific situation.
WHY IS PRE-QUALIFICATION IMPORTANT?
Buying a house can be a stressful and long process, but one way to set up yourself for success is to become prequalified for a mortgage. When you prequalify for a home loan, you’re getting an estimate of what you might be able to afford, based on information you provide about your finances, as well as a credit check.
Mortgage prequalification is a smart move if you want to remain competitive as a home buyer and e.g. put yourself in a better negotiation position with a potential seller.
HOW DO I KNOW WHICH IS THE RIGHT PROGRAM FOR ME?
There isn’t one right mortgage out there. Your product choice will vary immensely based on personal preference, along with what you can afford, what you plan to do with the property, and so on. It’s important to consider all the options available to make the right decision. At 1st Trust Financial we'll help you to navigate the many mortgage options out there, provide you with the best information and resources at all times to find your perfect mortgage match!
WHAT IS AN ESCROW ACCOUNT AND WHY DO I NEED ONE?
The Consumer Financial Protection Bureau (CFPB) describes an escrow account as an savings account set up by your mortgage lender to pay certain property-related expenses like property taxes and insurances.
Often mortgage lenders require that you pay your taxes and insurances using escrow, so they can make sure that the bill gets paid. That way lenders protect their interest in your home. The government can foreclose on your property if you're delinquent on property taxes even if your mortgage payment is current. An escrow account is also beneficial for you as the borrower since you send money every month through your lender or servicer and don’t have to pay a big bill once or twice a year. Usually your mortgage servicer will manage the escrow account and pay these bills on your behalf. In some cases escrow can also be required by law. Your property taxes and insurance premiums can change from year to year. Your total monthly payment and your escrow payment will change accordingly.
We’re here to answer any questions you may still have.