Based on your responses, we think you may be interested in the following loans:

Finding a lower mortgage rate translates to more cash in your pocket every month. What you choose to do with it is up to you.

For example, say you have a 30-year loan with a 6.5% interest rate which you’ve been making the monthly payment on for three years and has a loan balance of $100,000. Refinancing at even a 5% interest rate on a 30-year loan would save you $114 per month and save $28,770 in interest.

If your goal is to lower your monthly mortgage payments, consider a longer loan term than your current mortgage. You may pay more in interest over the life of the loan and it may take you longer to pay off your mortgage, but it can provide you with more financial flexibility each month.

With that in mind, however, remember that significantly lowering your monthly payment with a longer loan term may increase the total cost of owning your home, over the long term.

Fixed rate mortgages are most often offered in 30-, 20-, 15- and 10-year terms.

A 30-year fixed rate mortgage is popular because monthly payments are lower since they are spread over a longer period of time. However, because of the longer term, you will pay more interest than you would with a shorter-term mortgage. Shorter terms allow borrowers to pay off their mortgage sooner, resulting in less interest paid overall.

There are many different types of ARMs², but the most common are 5/6, 7/6, and 10/6. The first number indicates how many years the initial fixed-rate period will last, and the second number determines how often the rate will change every year over the 30 year term of the loan. For example, a 5/6 ARM² has a fixed-rate for five years followed by an adjustment in the interest rate every six months.

An ARM² might be a great option for you if you’re planning to move or sell your home after a few years, are planning to repay your loan in a short amount of time or want a lower initial monthly payment and don’t mind a variable interest rate.

An FHA loan is different from other types of mortgages because it allows for lower credit scores and requires less available equity than traditional mortgages when refinancing.

Step 1: Getting Started
During this step, you will want to work with a professional to help you review the options available to you and determine what will best suit your circumstances and needs.

Step 2: Completing Your Application
Now it's time to complete your application. Things like your credit may be pulled and paperwork is collected from you to confirm employment and income as required. Don’t worry, these are things you already have handy like pay stubs, tax forms, etc. Depending on the loan you move forward with, you may receive a Loan Estimate (LE) within 3 days of completing your application, which will give you a complete and detailed breakdown of the costs associated with your loan.

Step 3: Bringing It Together
This step includes combining your application with the documents you have provided. We’ll review these items and may require additional paperwork depending on the type of mortgage. If an appraisal is required, it will be ordered during this stage.

Step 4: Reviewing the Facts
In this step, your application and supporting documents will be evaluated in detail. If necessary, we will verify your income and assets, and check the guidelines to make sure we have thoroughly completed the evaluation.

Step 5: Meeting the Criteria
Some applications may meet the initial loan criteria but still need a few more items to move it forward. If this is the case with your application, you’ll be hearing from us to explain what’s needed.

Step 6: Getting to the Finish Line
This is the final step in the mortgage process. You will be hearing from us about any remaining details so we can each make sure we have everything we need. Additionally, if a Title company is needed, they will set up a meeting for you to come in and sign all required closing documents. You will be provided a Closing Disclosure in advance of your closing that, like the loan estimate you got at the beginning, breaks down all the associated costs and elements of your mortgage.

Step 7: Done!
Congratulations! Your refinance is complete.