Pac Western

Have interest rates fallen? Or do you expect them to go up? Has your credit score improved enough so that you might be eligible for a lower-rate mortgage? Would you like to switch into a different type of mortgage?

The answers to these questions will influence your decision to refinance your mortgage. But before deciding, you need to understand all that refinancing involves. Your home may be your most valuable financial asset, so you want to be careful when choosing a lender or broker and specific mortgage terms. Remember that, along with the potential benefits to refinancing, there are also costs.

When you refinance, you pay off your existing mortgage and create a new one. You may even decide to combine both a primary mortgage and a second mortgage into a new loan. Refinancing may remind you of what you went through in obtaining your original mortgage, since you may encounter many of the same procedures - and the same types of costs - the second time around.

Why refinance?

To lower your interest rate.

To adjust the length of your mortgage.

To Change from an adjustable-rate mortgage to a fixed-rate mortgage.

To Getting an ARM with better terms.

To get cash out from the equity built up in your home.

When not to refinance.

You’ve had your mortgage for a long time.

Your current mortgage has a prepayment penalty.

You plan to move from your home in the next few years.

If you plan to refinance, you may want to start with your current lender. That lender may want to keep your business, and may be willing to reduce or eliminate some of the typical refinancing fees. For example, you may be able to save on fees for the title search, surveys, and inspection. Or your lender may not charge an application fee or origination fee. This is more likely to happen if your current mortgage is only a few years old, so that paperwork relating to that loan is still current. Again, let your lender know that you are shopping around for the best deal.

PMI Expands Refinance-to-Modification Program
PMI Mortgage Insurance Co. announced today an expanded Refinance-to-Modification (RTM) program that can be used with all PMI-insured loans, not just Home Affordable Refinance Program (HARP) eligible loans owned or guaranteed by either Fannie Mae or Freddie Mac. Under the program, the PMI coverage percentage and premium rate remain the same and the existing insurance certificate is modified to cover the new refinanced loan. To minimize borrower expenses associated with this process, PMI is also not charging fees to modify the existing insurance certificate for either the New Lender/Servicer or Same Lender/Servicers Programs.


	Pac Western

	Home - Site Map Have interest rates fallen? Or do you expect them to go up? Has your credit score improved enough so that you might be eligible for a lower-rate mortgage? Would you like to switch into a different type of mortgage? The answers to these questions will influence your decision to refinance your mortgage. But before deciding, you need to understand all that refinancing involves. Your home may be your most valuable financial asset, so you want to be careful when choosing a lender or broker and specific mortgage terms. Remember that, along with the potential benefits to refinancing, there are also costs. When you refinance, you pay off your existing mortgage and create a new one. You may even decide to combine both a primary mortgage and a second mortgage into a new loan. Refinancing may remind you of what you went through in obtaining your original mortgage, since you may encounter many of the same procedures - and the same types of costs - the second time around. Why refinance? To lower your interest rate. To adjust the length of your mortgage. To Change from an adjustable-rate mortgage to a fixed-rate mortgage. To Getting an ARM with better terms. To get cash out from the equity built up in your home. When not to refinance. You’ve had your mortgage for a long time. Your current mortgage has a prepayment penalty. You plan to move from your home in the next few years. If you plan to refinance, you may want to start with your current lender. That lender may want to keep your business, and may be willing to reduce or eliminate some of the typical refinancing fees. For example, you may be able to save on fees for the title search, surveys, and inspection. Or your lender may not charge an application fee or origination fee. This is more likely to happen if your current mortgage is only a few years old, so that paperwork relating to that loan is still current. Again, let your lender know that you are shopping around for the best deal. PMI Expands Refinance-to-Modification Program PMI Mortgage Insurance Co. announced today an expanded Refinance-to-Modification (RTM) program that can be used with all PMI-insured loans, not just Home Affordable Refinance Program (HARP) eligible loans owned or guaranteed by either Fannie Mae or Freddie Mac. Under the program, the PMI coverage percentage and premium rate remain the same and the existing insurance certificate is modified to cover the new refinanced loan. To minimize borrower expenses associated with this process, PMI is also not charging fees to modify the existing insurance certificate for either the New Lender/Servicer or Same Lender/Servicers Programs.		Subscribe to our Monthly Email Newsletter How much will refinancing cost? It is not unusual to pay 3 to 6 percent of your outstanding principal in refinancing fees. These expenses are in addition to any pre-payment penalties or other costs for paying off any mortgages you might have. Refinancing fees vary from state to state and lender to lender. Here are some typical fees and average cost ranges you are most likely to pay when refinancing: Application fee. Cost = $75 to $300. Loan origination fee. Cost = 0% to 1.5% of the loan principal. Points. Cost = 0% to 3% of the loan principal. Appraisal fee. Cost = $300 to $700. Inspection fee. Cost = $175 to $350. Attorney review/closing fee. Cost = $500 to $1,000. Homeowner’s insurance. Cost = $300 to $1,000. FHA, RDS, or VA fees or PMI. Cost = FHA: 1.5% plus 1/2% per year; RDS: 1.75%; VA: 1.25% to 2%; PMI: 0.5% to 1.5%. Title search and title insurance. Cost = $700 to $900. Survey fee. Cost = $150 to $400. Prepayment penalty. Cost = one to six months' interest payments. Lenders are required by federal law to provide a "good faith estimate" within three days of receiving your loan application. Ask your lender for an estimate of the closing costs for the loan. This estimate should give you a detailed approximation of all costs involved in closing. Review these documents carefully and compare these costs with those for other loans. Also, ask for a copy of the HUD-1 settlement cost form one day before you are due to sign the final documents. If you want to make sure the interest rate your lender offers you is the rate you get when you close the loan, ask about a mortgage lock-in (also called a rate lock or rate commitment). Any lock-in promise should be in writing. Make sure your lender explains any costs or obligations before you sign. Shop around and compare all the terms that different lenders offer - both interest rates and costs. Remember, shopping, comparing, and negotiating can save you thousands of dollars. The Internet is a good place to start shopping for a loan. You can usually find information on the latest interest rates and points offered by several lenders. Since rates and points can change daily, you’ll want to check information sources often when shopping for a home loan. Auto Refinancing Guide - How to Refinance Your Car Loan Auto Refinancing Guide - How to Refinance Your Car Loan With the Sharp Increase of Mortgage Applications, csimortgage.com Advises Buyers to Study the Different Loans Available Advise on mortgage loans available to first-time buyers and people looking to refinance their current mortgage. 1st And 2nd Mortgage Refinance Loan - Why Refinance Both Mortgages? 1st And 2nd Mortgage Refinance Loan - Why Refinance Both Mortgages? Nationwide Mortgage Lender Introduces FHA Mortgage Refinance Loans with Higher Home Loan Limits and Cash Out Refinancing to 95 Percent BD Nationwide Mortgage introduces new loan limits for FHA mortgage refinance and home purchase loans. The increased loan limits for FHA mortgages offer a unique opportunity for homeowners to refinance into a lower interest rate loan that is fixed with 15 or 30-year terms. The lender is excited to release the FHA refinance loan that allows cash out up to 95% loan to value. This unique government insured mortgage product allows homeowners to escape their adjustable rate mortgage that has been draining their savings.