Determining if a home refinance loan is right can be confusing. That's why we've put together a list of common questions that homeowners have when considering refinancing.
What is Refinancing?
Refinancing is simply getting one loan to pay off another.
What does refinancing cost?
At Millennial Mortgage, Inc we dont believe in junk fees. We dont charge any application fees, processing fees, overnight delivery fees, or any other type of junk fees. We believe in keeping it simple and straightforward and passing on wholesale savings to our clients. Typically, the only costs you are responsible for are your title, escrow, and appraisal charges (if needed) which may vary depending on factors such as loan size, location, and type of loan transaction but even these can be avoided with our low or no-cost loans. Contact us if you have any questions or would like to know more.
How does the APR differ from the interest rate?
The rate refers to what percentage of your loan you will pay in interest per month, whereas the annual percentage rate (APR) is an adjusted percentage that expresses the yearly cost and also includes certain charges and fees.
What are FRM & ARM?
The interest rate of a Fixed-rate Mortgage (FRM) will not change for the life of the loan. Alternatively, an Adjustable-rate Mortgage (ARM) will be subject to periodical interest rate adjustments based on market conditions at the time of adjustment.
What is PMI?
PMI stands for Private Mortgage Insurance. Borrowers with less than a 20 percent down payment are required to carry this insurance as a means of protecting the lender against default. There are several options to dealing with this however, and paying an ongoing monthly amount is not always the best option. Contact us if you would like to know more.
Will I need to get an appraisal when I refinance?
Not always. Depending on the type of loan an appraisal may or may not be required.
Does bad credit exclude me from a refinance loan?
Not exactly. When considering a refinance loan it's important to remember that, generally speaking, the better your credit score the better overall terms you can get. So if you don't have perfect credit you can still qualify for a refinance loan but you'll want to make sure that there's enough benefit to make a refinance worth it.
Do I need to have equity in my home to refinance?
It depends on the type of loan. HARP 2.0 loans allow you to still be able to refinance even if you are under water on your mortgage and have negative equity in the home. FHA streamlines in most cases do not require an appraisal. VA products can go up to 100% loan-to-value with NO mortgage insurance. There are many prodcust available in todays market place but which product is best for you comes down to your individual situation. Contact us to discuss which products and options may be right for you.
Can I get cash from a refinance loan?
Yes. Depending on the type of refinance loan you opt for you can take out cash to use for bills, home repairs or whatever you might need it for. This option however should be carefully discussed with us. Please contact us today if you're interested in this type of refinance loan.
How long does it take to go through the refinance process?
A typically refinance usually takes between 2 and 4 weeks. Getting your home appraised is usually where most hang-ups occur so if you can schedule a home appraisal right away than getting a refinance loan is usually very quick.