Refinancing 411s

Refinancing 411

Homeowners can choose to refinance their home by obtaining a new mortgage for their house. This is often

done when individuals feel that they can lower their monthly payments, obtain equity, switch mortgage

companies or score a lower interest rate.

Currently, there are historically low interest rates for home mortgages. Knowing when and how to refinance is

crucial. 

NMLS ID#6606. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms and conditions are subject to change without notice. © New American Funding. New American and New American Funding is a registered trademark of Broker Solutions, DBA New American Funding. All Rights Reserved.1/2015. For a complete list of our licenses, please visit:www.newamericanfunding.com/licensing

When to Refinance• Knowing closing costs and average savings can

help determine whether refinancing is a viable option for you.

• You should only refinance once, so ensure timing is right and interest rates would save you money.

• Wanting to consolidate current debt may be another sign that you should finance. Home equity loans and mortgages together may be too much to manage.

Steps to Take When Refinancing Your Home

Pros and Cons of Taking Out a New Loan

• "Consider how much interest you'll be paying with a new loan in total, compared to what you've already paid with your old loan. Even though your monthly payment is lower, you might be paying more interest over the life of the new loan than you've got left to pay on your old mortgage." - Mike Dubis, a certified financial planner located in Madison, Wisconsin.

• If you decided to commit to a 30-year fixed-rate mortgage, you may have to continue making payments into your retirement if you refinance later in life.

• You can often determine whether refinancing is worthwhile by asking yourself if you can recover from the associated expenses within a year's time.

Organize Yourself

Gather all materials and organize them in a folder before speaking with a lender. Make sure you include the following documents:

• All federal tax returns from the past 18 months• All W-2 earning statements from the past 18 months• Bank statements• Recent stubs from your paychecks• Proof of any income outside of a paycheck (such as

tips, investment earnings, etc.)

Shop Around for a Lender

• In a recent report by the Consumer Financial Protection Bureau, it was indicated nearly 50 percent of the individuals looking for a mortgage do not consider different options provided by lenders.

• Barry Zigas, the director of housing policy for the Consumer Federation of America, told Bankrate that your current lender may cut costs if you inform them you are looking to refinance. Lenders want to keep your business and oftentimes this leads to savings.  

Contact Your Loan Officer Today to Learn More About

Refinancing your home!