Whether or not you should pursue a refinance is dependent on your specific situation, as well as your long and short-term housing goals. The most common reasons to refinance are lower (a) interest rates and/or (b) payment, (c) converting from an adjustable to a fixed rate, or (d) a cash out refinance to consolidate higher interest rate debt. If your objective is to reduce your rate and payment, you should reach out to a mortgage company (like LUM!) for a consult and request a quote. If you are converting your adjustable rate into a fixed rate, you may actually see an increase in your rate and payment but you'll get peace of mind knowing your rate will never increase again. If you are using the equity in your home to consolidate debt, your overall loan balance and payment may go up, however, you will likely save money because you will eliminate the monthly obligations that you are paying off. Your mortgage lending officer can run some numbers for you and help you determine whether or not refinancing makes sense for you.

Every situation is different. It depends on what your current interest is and what your motivation is for refinancing. If your current rate is higher than what is available in the market, it probably makes sense to refinance. Give us a call for some expert advice, or schedule a consult!

Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These include 3rd party fees such as credit report, title, escrow, notary, and recording fees. Other fees include the appraisal fee and lender fees such as processing and underwriting. If you are paying points to lower the rate, the cost of each point that you pay equals 1% of your new loan amount. Aside from the closing fees, there will be prorated, pre-paid costs for items such as property taxes, interest, and homeowners insurance (if applicable). If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.

Standard documentation collected for a refinance transaction includes information regarding your income such as pay stubs covering the most recent 30 days and W-2s for the last two years, asset information such as bank or mutual fund/stock statements covering the last 60 days and current loan information such as your most recent mortgage statement and homeowners insurance declarations page.

Depending on the reasons why your credit is imperfect, there are great loan options available including our government programs. Schedule a consultation with LUM so can help you determine whether or not you qualify for one of our programs.

Our refinance transactions could take anywhere from as little as two week and up to 45 or even 60 days based on the complexity of your loan. We've built a smooth and seamless process, enhanced by our paperless technology and strategic industry partnerships that enable us to close loans faster than the average industry turn-times. As long as you do your part in delivering the documentation that we need in a timely manner.