quicken refiguide nc

8/8/2019 Quicken Refiguide Nc

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Q U I C K E N L O A N S G U I D E

Refnancing


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Home Loan U is a ree educational series rom Quicken Loans,

created to help you make the most o your home, and home

fnancing, at every stage o li e.


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TABLE OF CONTENTS

A Shor Co rs i R i a ci Yo r Mor aWelcome to the Home Loan U Guide to Refnancing rom Quicken Loans. Here, you’lllearn the important advantages o re nancing, as well as in ormation about your

options and home loan products that can better your situation. I you’re looking orthe tools you need to make an educated decision on re nancing your mortgage and theknowledge you need to achieve your nancial goals, you’re in the right place. Here’swhat you can expect to learn:

Prep School:Why Refnance? .............................................................................................. 2-3

Do the Math:Equity + You = Power ......................................................................................... 4

Do Your Research:Go Bigger or Go Home ......................................................................................... 5

Study Guide:The Short Course in Home Loan Options ................................................................ 6

Learning rom Others:Case Studies in Refnancing as the Solution to Financial Hurdles ........................... 7

Never Stop Learning:Count on Quicken Loans or Li e ........................................................................... 8

Contacts at a Glance ............................................................................................. 9

http://www.quickenloans.com/




PREP SCHOOL:WHY REFINANCE?

Your li e changes, and your mortgage should change with it. Whether you are moving,

staying put, have a lot o expenses, or experience a change in your nances, it’s

important to make sure your home loan is keeping up with you. Here are some o the

most common reasons that homeowners choose to re nance:

Yo Hav a A j s a l Ra Mor a (ARM)a I ’s A o o A j s

I your introductory xed-rate period is almost over, your interest rate could have a growthspurt that could double your payment overnight. Re nancing be ore your rate goes up is a goodway to protect your nances rom a jolting payment increase.

Yo r Mor a I r s Ra Is Hi h r ha hC rr Mar I r s Ra

Even a small reduction in interest rates could save you a lot o money in the long run. Makesure you are getting the lowest possible interest rate to save you and your amily money.

Yo ’r Pla i o S ay i Yo r Homor S v ral Y ars

Now could be a great time to reevaluate the type o home loan you have. Because you knowthat you’re going to stay put or several years, it’s easy to set and achieve long-term goals withthe help o the right home loan.

Yo Wa o Pay O Yo r Mor a Soo r When rates all, you can take advantage o securing a rate over a shorter mortgage term topay your mortgage o sooner.

Yo Hav a A j s a l Ra Mor a aYo Wa o Loc i a Fix Ra

I your payments are already fuctuating, you can keep your payments steady by re nancing toa xed rate mortgage. Your rate will stay constant in a rising-rate environment.

YOuR IntROduCtORY COuRSe FOR MAkIng tHeHOMe LOAn deCISIOn tHAt’S RIgHt FOR YOu





Yo Hav O h r d Yo n o R c Do you have credit card debt, student loans, car loans…any high-interest debt? You can reduceor eliminate your debt with a home equity loan, line o credit or cash-out re nance. Debtconsolidation is one o the most popular reasons or re nancing.

Yo Wa o Ma Hom Improv m sWould your home bene t rom a new kitchen, new windows or an addition? A home equityloan or a line o credit can help und your improvements. It’s a great way to increase the valueo your home a ordably.

Yo Hav Coll t i io o PayA great way to nance your own education or your child’s college tuition is by re nancing.You can get cash out or a home equity loan or a stress- ree payment option.

Yo r Cr i Scor Has Impr ovI you’ve worked hard to improve your nancial situation by paying o credit accounts thatwere weighing down your score, it’s time to call your home loan expert. You could quali y ora much lower interest rate i your score has substantially improved.

* Extra CrEdit *

These are some o the most popular reasons to refnance.But there are hundreds. It alldepends on your currentfnancial situation. Call yourQuic en Loans home loanexpert to fnd out whatrefnancing can do or you.

* raiSE YOUr HaNd *

Ha e more questions about how toimpro e your credit? You can fndthe answers in the Home Loan U Guide to Managing Your Credit .You’ll get a crash course inunderstanding credit, the secretsto acing your credit report, and somuch more!


http://www.quickenloans.com/mortgage/articles/credit-guide.html







Hom eq i y, d iHome equity is the monetary di erence between the value o your home and how much youhave le t to pay on your mortgage. For example, i your home is valued at $200,000 and youowe $150,000 on your mortgage, you have $50,000 o equity in your home.

S rai h o h H a o h Class :g i h Hom eq i y A va a

The equity you have in your home can be a power ul tool to help you achieve your nancialgoals. It can help you get through a rough nancial patch, pay or home improvements, undcollege tuition, eliminate high-interest debt…whatever ts your needs. Using your equity as

a means o payment is typically a better resource than other methods o borrowing becausethe interest rate is lower than with most credit cards and the interest accrued can be taxdeductible.

DO THE MATH: EQUITY + YOU = POWERHOW REFINANCING TO USE THE EQUITY

IN YOUR HOME CAN WORk FOR YOU

R i a ci Yo r Mor a ,wi h Cash O

I the value o your home has increased since youpurchased it, you can re nance your home at itscurrent value and receive a lump sum o cash equalto the di erence in equity.

Benefts:

• Lower mortgage payments• Instant cash to pay off high-interest debt• You could shorten the term of your home loan• Lower interest rate

* Extra CrEdit *

g i co rol o yo r f a c s: I you ha e debt, or upcomingdebt, write down exactly whatexpenses you need to co er.Then determine whether they’reongoing or i they can bemanaged in one lump-sum loan.I you lay out your expenses in

ront o you, you’ll more easilygain control o your debt.





DO YOUR RESEARCH:GO BIGGER OR GO HOME?

You own a home, and now, your amily needs more space. Now what? Do you add on to yourcurrent home or do you move to a larger one? Here are some thoughts to help you decide.

Wha o Co si r :I you love your current neighborhood, your current schools and your location, you mightstrongly consider remodeling. I that’s the case, let your decision rest upon the expense andwhat is approved by your neighborhood and your contractor.

Rais Yo r Ha :Ask your contractor i your home’s style and structure are suited or an addition. Also checkwith your local authorities about land use and zoning regulations.

Is I Wor h I ?The next step is to add up the potential costs o bothoptions. Your home loan expert can help you crunch thenumbers. Let him or her know what the estimated cost

o your remodel will be. By adding the total cost o yourremodel to your estimated closing costs and recalculatingyour cash-out re nance at the current interest rate, you’llbe able to get a good idea o your projected monthlymortgage payment.

To compare, you could sell your current home and use theproceeds to pay the up- ront costs o purchasing a largerhome. Your home loan expert can also help you calculatethe cost o making the move. Have a ballpark price range

in mind or an accurate comparison, and don’t orget toactor in moving costs, closing costs and real estate agent

costs when applicable. The cost o moving can be around8 to 10 percent o your current home’s value, according tothe American Homeowners Foundation. And consider thatthese costs would not be part o a remodeling project.

* Extra CrEdit *

Cr ch yo r m rs! Don’t guesstimate when itcomes to big fnancial decisions.You could sa e a lot o money

by pricing out additions insteado just pic ing up and mo ing.I you need help with thenumbers, your home loanexpert can help fgure outwhat’s right or you.

deCIdIng WHetHeR tO SHOP FOR A bIggeRHOuSe OR tO Add On tO tHe HOMe Y Ou’Re In





Quicken Loans knows everyone’s nancial situation is different. That’s why we offer

over 100 different loan products to t your speci c needs. Your Quicken Loans home

loan expert is ready to help you nd the right mortgage or your individual situation.

When you call your banker, here are a ew o the loan options and term lengths you

might talk about:

Lo -t rm Mor a s: 20, 25, 30 a 40-Y arFix -Ra Mor a s

Getting a mortgage term that’s 20 years or longer might be a good choice or you i you don’tanticipate a lot o change in your li e. In other words, you plan to stay in your home or tenor more years and you expect that your income will be about the same. With a long-term,

xed-rate home loan, the advantage is that your payments will never change and your interestrate will stay constant over the entire li e o the loan. The downside? You may end up payingout more over the li e o the loan because you’ll be paying interest over a longer period otime. I you choose a long-term mortgage, you’ll also want to pay close attention to changinginterest rates in the home loan market. I they drop substantially below your xed rate, you’llwant to re nance in order to take advantage o them.

Shor r- t rm Mor a s: 10 a 15-Y arFix -Ra Mor a sI paying o your mortgage quickly is a priority or you, a shorter-term mortgage might bea great option. The advantage? You’ll pay o your mortgage in less time, and you’ll typicallypay less interest because your term is shorter. Most importantly, you’ll build more equity ina shorter period o time, because more o your monthly payment goes toward paying o theprincipal. And o course, your xed rate and your payment amount will never change over theli e o the loan. Talk to your tax advisor about whether a shorter-term mortgage would a ectyour deductions.

3, 5 a 7-Y ar A j s a l Ra Mor a s (ARMs)An adjustable rate mortgage is a good alternative i you need to keep your payments low orthe rst ew years. The advantage is that the introductory interest rate on an ARM is typicallymuch lower than on a xed rate mortgage, making your mortgage payment exceptionally lowup ront. That low interest rate is xed or the rst three to seven years, depending on the typeo ARM you get. A ter the initial period has passed, the rate can rise and fuctuate with thecurrent market rate. Many homeowners continually re nance their ARMs every three to veyears to maintain a lower interest rate.

STUDY GUIDE:THE SHORT COURSE IN HOME LOAN OPTIONS





Cas S y #1: Cr i Cr chPaul and Karen were in a short-term nancial crunch. They were having a hard time payingtheir bills every month and meeting deadlines. They elt like they had a lot o credit cards tokeep track o and were only able to pay the minimum payment on most o them.

SOLutIOn: Paul and Karen consolidated their debt by re nancing and lowering theirpayment. Now they are able to pay o the balances on their credit cards much aster.

Cas S y #2: t i io Fr i ioWith their son starting college in the all, Deon and April needed to pay the tuition billsthroughout the school year.

SOLutIOn: Deon and April re nanced their mortgage with cash out. They used the cashthey took out to make large tuition payments every semester. Because the interest rate on thecash they’d taken was lower than using a credit card, they paid less in interest.

Cas S y #3: u v I com , Smoo h R iJim is a success ul equipment sales agent, but his income is cyclical. He has an infux o cashduring some months, but other months are too slow to make ends meet.

SOLutIOn: Jim re nanced to an interest-only loan which helps him manage the peaksand valleys o his nances. When his commission income is up, he pays down the loansigni cantly by making payments o principal and interest. When his income is down, hecontinues to make the interest-only payment. This allows him to cover his expenses at a lowerinterest rate than using a credit card.

LEARNING FROM OTHERS:CASE STUDIES IN REFINANCING AS

THE SOLUTION TO FINANCIAL HURDLES





NEvER STOP LEARNING:COUNT ON QUICkEN LOANS FOR LIFE

Your Quicken Loans home loan expert is not only here to help you manage your home

nancing now, but can make sure your nancial situation is also helping you to achieve

your long-term goals. A ter all, li e changes, and your mortgage should change with it.

As a service to our clients, we will keep you in ormed o industry trends and new home

nancing options long a ter your closing. Your mortgage will be a large piece o your

nancial port olio, and we want to help you manage it just as you would manage any

investment. You’ll also receive our Home Advantage magazine in the mail, publishedexclusively or our valued clients.

Any time you have questions regarding home nancing, we encourage you to contact

your home loan expert. Quicken Loans will continue to give you the service you deserve.

A referral is the best compliment. If you had a great experience with Quicken Loans,

tell someone you know. We can proudly say that 9 out o 10 clients are pleased with

Quicken Loans enough to refer us. We’d be glad if you would, too.




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CONTACTS AT A GLANC E

The ollowing is a list o the resources included in this guide:

QuICken LOAnS

quickenloans.com • 800-979-4922

Home Loan U Guide to Re nancing

HomeLoanU.co m





http://www.homeloanu.com/






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