Fixed Rate Refinance If you chose an adjustable rate mortgage (ARM), you may find that refinancing to a fixed-rate mortgage is a good idea if interest rates are significantly lower now. When refinancing to a fixed rate mortgage, you can lock in the current, lower interest rates and pay less in interest and also have lower monthly payments. However, there are usually closing and transaction fees associated with refinancing debt and these costs must be weighed against the long-term benefits of doing the refinance. Again, you should consult with a mortgage professional to make sure that a refinance mortgage represents a sound financial decision. Another option is to change the terms of the fixed rate mortgage. Say your first mortgage is a 30-year fixed rate mortgage, refinancing to a 15-year fixed rate mortgage for example may increase your monthly payments but end up reducing the amount of interest you will ultimately pay in the long term. This results in your principal being paid off more quickly and increases your home equity. Refinancing to fixed-rate mortgages is most helpful for homeowners who intend on staying in their homes for several years (usually at least 10 years). Adjustable Rate Refinance ARMs are attractive to some homeowners because they traditionally have a lower initial interest rate than many fixed-rate mortgages. However, the interest rate for ARMs will fluctuate over time along with changes in market conditions. Refinancing to ARMs may be a good idea for homeowners who wish to do away with their high interest rate payments on the fixed-rate mortgage. Some borrowers who had an ARM as their first mortgage also choose to refinance from their first ARM to another ARM in order to get a lower rate. ARMs can be risky. Interest rates for ARMs vary depending on the lender and the interest payments will fluctuate. If a homeowner is planning on living in his or her current home for more than just a few years, affixed rate mortgage may offer more financial security. |
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DU Refi Plus™ DU Refi Plus™ isFannie Mae's newest version of Desktop Underwriter, version 7.1. DU Refi Plus™ is designed to reignite the mortgage industry by simplifying the refinance process for millions of Americans. With less-stringent underwritting guidlines that include lower acceptabl ecredit scores, decreased income documentation and even apprasels being waived in certain situations, Fannie Mae allows homeowners to refinance up to 105%(loan-to-value LTV) of the current appraised value of their homes. Among the other significant changes include Fannie Mae accepting credit scores below the current 580 requirement, as well as borrowers only having to submit one current pay stub, rather than the conventional two. The ultimate goal of DU Refi Plus™ is to assist homeowners toavoid foreclosure and remain in their homes. Combined with lowcurrent intrest rates, borrowers can anticipate lower principal and interest payment each month. In addition, mortgage bankers, mortgage brokers and mortgage lenders are encouraged to provide better alternative products to their borrowers, such as refinancing adjustable rate mortgages (ARMs) to more stable fixed-rate mortgages. |
Jumbo Loans
Finding the right mortgage is just as important as finding the right home. With so much at stake, it’s important to get expert advice from a company that you can trust.United Investment Bankers has a team of dedicated experts for Jumbo Mortgage Programs. We are committed to finding the right loan, at the right rate, and keeping you informed every step of the way.
Jumbo Mortgage Programs -- Explained
Jumbo Mortgage Programs are those with a loan amount over the industry standard conforming limit. Set by congress, the conforming limit is defined by the maximum loan amount available for purchase by Fannie Mae and Freddie Mac -- the two federally charted organizations that procure mortgage securities. The current conforming limit is $417,000. Being above the conforming limit, Jumbo loans are often subjected to premiums on interest rates and other restrictions. Jumbo Mortgage Programs -- The Options
Because Jumbo Mortgage programs are subject to special conditions over and above conforming loan conditions, it’s important to consider all the available options. The higher loan amounts associated with Jumbo Mortgage programs normally mean that no-money-down programs are generally not available. For the most part, a minimum of 5% down payment is required to secure Jumbo loan programs. Additionally, because of increased loan amount, it is recommended to investigate the viability of variable and fixed interest rates for Jumbo Mortgages. Jumbo Mortgage Programs -- Getting the Right Advice At United Investment Bankers, we have Jumbo loan experts ready to discuss the various options available to you. We are committed to exceptional service and offering the best Jumbo Mortgage rates available. |
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TYPES OF REFINANCE OPTIONS
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Cash out Refinance Cash-out refinance mortgages involve getting a new, larger mortgage to get extra cash to pay off debt whether it is a school loan, automobile payments, costs associated with home improvement, among other things. If you get a $225,000 cash-out refinance mortgage, the existing balance on your first mortgage can be paid off, and the homeowner has access to an additional $100,000 in cash. Typically, cash-out refinances are limited to a loan to value ratio of 80 percent. Lenders that offer a higher loan to value ratio will usually ask for higher up-front fees. Cash-out refinances can also be risky. You may incur extra tax liabilities when borrowing against your home. Borrowers may also increase their debt if they don't manage their spending habits effectively. No Closing Cost Refinance No-Closing Cost Refinance loans usually require the borrower to pay less in upfront fees relative to the other refinancing options. It may be beneficial to this type of refinance loan if the market interest rate is lower than your existing rate by 1.5 percentage points of more. However, many lenders will waive the upfront cost but incorporate an extra cost to the borrower in the form of a yield spread premium that is added on to the back end of your new refinance loan. Make sure lenders provide you full disclosure about both upfront and hidden costs! |
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