Is your current mortgage interest rate too high? Do you want to reduce your monthly payments? Do you have major home improvements to finance or do you just want to pay of your loan sooner? Do you have debt you want to consolidate? If you answered yes to any of these questions, refinancing your mortgage is a way to potentially lower your interest rate and monthly mortgage payment, change to a fixed-rate refinanced loan with a shorter duration, or use a portion of the equity available in your home to finance major expenses. Please navigate to the below information to learn more about refinancing your mortgage with us here at American Interbanc Mortgage.
Life’s circumstances change. Market forces change. There are many great reasons for refinancing a mortgage – listed below are a few of the most common reasons:
- Lower Your Monthly Payment:
Perhaps you’re expecting a new baby, or are going to take a new job that pays a little bit less. If you want more cash in your pocket each month, you can refinance into a lower rate or longer loan term (e.g. from a 15 year fixed-rate mortgage into a 30 year fixed-rate mortgage). Either change can result in a significantly lower mortgage payment!
- Reduce Your Loan Term:
Are you getting closer to retirement and don’t want the burden of mortgage payments on a fixed income? Are you earning more income now than when you obtained your 30 year mortgage? Refinancing into a shorter loan term (e.g. from a 30 year fixed-rate mortgage into a 10 or 15 year fixed-rate mortgage) will allow you to pay off your home sooner and significantly lower the amount of interest that you pay over the life of the loan. In some cases, you may also be able to significantly reduce your interest rate simultaneously, so there is little change to your monthly payment. A true “win/win” situation!
- “Cash-out” Some of Your Home’s Equity:
Do you want to expand your house to finally include that home office you have always wanted? Refinancing your mortgage to access your home’s equity is referred to as a “cash-out” refinance. A cash-out refinance requires you to increase your loan balance but you will be able to allocate the proceeds of your cash-out to other useful purposes. Some common reasons for a cash-out refinance are:
- Consolidate credit card debt or pay off a Home Equity Line of Credit.
- Fund a home improvement project.
- Pay for a nonrecurring expenses, like buying a car, a wedding or financing an education—purchases that might otherwise require the customer to borrow funds at a higher, non-tax-deductible interest rate.
Please call us today to discuss whether or not refinancing makes sense for your situation. Call our toll-free refinancing hotline at (800) 724-0004.
We’ve designed our refinance process at American Interbanc Mortgage to be quick, easy and transparent. With a focus on responsible lending, quick turn times and quick approvals, our goal is to make the refinancing process as easy as possible. Our experienced Loan Officers will work closely with you to ensure that we provide you the right loan product for your current and future needs. Whether it is a rate and term, cash-out or any other type of refinance, American Interbanc Mortgage is your one-stop shop for your refinancing needs.
The following outlines the quick and easy steps that you need to take in order to refinance with American Interbanc Mortgage:
Q: How do I start the application process for an American Interbanc Mortgage refinance loan?
A: You may get stated with your mortgage application in a number of ways:
Q: What type of refinancing programs does American Interbanc Mortgage offer?
A: American Interbanc Mortgage offers two types of full documentation refinancing: Rate/Term Refinance and Cash-Out Refinance.
A Rate/Term Refinance is the simplest type of mortgage because the customer is simply changing the interest rate and term of the loan, and perhaps the loan program, but not the loan amount. It may also be known as a “no cash out refinance” for this reason. This refinancing program allows the customer to pay off the customer’s existing mortgage and include the new closing costs in the new mortgage amount. The customer may use this type of refinance program to reduce the customer’s interest rate, loan term or both. Although there will be closing costs associated with the new refinanced mortgage, the lower interest rate should eventually offset these costs and benefit the customer in the long run. This is known as the “break-even point of the refinance” – essentially when the closing costs are offset by lower monthly mortgage payments, so subsequent payments save the homeowner money each month.
A Cash-Out Refinance allows the customer to turn the equity he/she has built in the property into cash which can be used for a variety of purposes. Once the refinance is complete, the new loan will consist of the original balance prior to the refinance plus the desired cash-out amount. Both the size of the customer’s mortgage and the mortgage payment may increase, depending on the difference between the customer’s old interest rate and the new refinance rate. For example, on a $500,000 home, in which the original loan has an outstanding balance of $300,000, a cash-out refinance could allow the homeowner to take a new mortgage for $400,000, pay off the $300,000 outstanding balance on the original mortgage, and use the remaining $100,000 to finance an home expansion, pay for an emergency, or for any other reason the homeowner wants.
Q: If I refinance, where will the closing be conducted?
A: Closing on the customer’s new loan will be conducted at the office of the Escrow Company or attorney assigned to the customer’s closing. As an added convenience, American Interbanc Mortgage can also arrange for a closing agent (mobile notary) to come to the customer’s home in order to sign the necessary papers.
Q: How long will the refinance process take?
A: Usually loans will be closed within 30 days from the date of completed application and after all required loan documents have been submitted. Remember, we are fast and thorough here at American Interbanc Mortgage, but we can only move quickly when the customer provides all documentation we need.
Below are examples of supporting documents which may be included in a loan file:
- Pay Stubs covering the customer’s most recent two pay periods for each applicant.
- W-2 Forms for the previous two years.
- Two most recent years’ federal tax returns (e.g. for a loan in 2015, the customer need to submit the customer’s 2014 and 2013 federal tax returns). All the pages and all schedules.
- If the customer is self-employed, the two most recent years’ business tax returns are also needed.
- For self–employed or investment income, the two most recent years’ 1099’s and K-1 forms are also needed
- For self–employed business income,year-to-date profit and loss statement and balance sheet.
- For retired customers, copy of Social Security and/or Pension “award letters” detailing the amount of retirement income.
- Two most recent months’ bank statements. All of the pages.
- Homeowner’s Insurance statement(s) for all properties owned showing the customer’s coverage and the annual premium.
- Mortgage statements for all properties owned that have liens.
- Copy of driver’s license or State I.D.card for all customers.
- If divorced, the customer’s fully executed divorce decree.
Note: Additional documentation may be used depending on the specific details of a customer’s loan application.
Rate Lock Policy
At a certain point in the processing of your loan, you will be eligible to request your rate lock. The rate lock secures the market rate then in effect for the lock period that you choose.
Rate Lock Hours:
Lock requests will be accepted from the time we post rates on our website until 4:00 PM PST/PDT Monday through Friday, excluding holidays. No locks will be accepted on holidays. Please use email communications during non-working hours.
Please call 800-724-0004 to speak with a Loan Officer or email email@example.com (firstname.lastname@example.org) if you have questions regarding our rate lock policy or your rate lock.
Volatile Market Conditions
American Interbanc Mortgage reserves the right to suspend lock requests on any business day that market conditions prohibit our ability to execute a lock.
Talk to a Loan Specialist Today
We want you to feel confident about purchasing or refinancing your home. Our experienced loan specialists are here to answer any questions or to address any concerns you may have. Get in touch today to lock in your custom rate or to begin the application process.