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Refinancing is often used to
lower your interest rate. If rates have dropped since you
last financed your home, you may want to consider
refinancing. Other common reasons to refinance include
paying off a balloon payment, converting an adjustable rate
loan to a fixed rate loan or to extract cash equity in your
home (cash out). A few reasons for cashing out include: home
improvement, an education fund, and consolidating debt.
Another way to convert equity in your home to cash is a
"home equity" loan. A "home equity" loan is an alternative
to refinancing if your home loan has a very low rate
compared to current interest rates or if you have a
prepayment penalty on your loan.
Benefits:
• Reduce Your Interest Rate
• Cash Out Equity for Home Improvements
• Consolidate Debt
• Lower Monthly Payments
To Refinance You'll Need:
• Current Appraisal and Analysis
• Verification of Assets and Income
Paperwork Needed
To apply for a loan, you will
have to provide the lender with detailed documentation of
your financial history. The lender will request a credit
report from a credit agency and will verify the information
provided in your loan application. Be prepared to give us
with:
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Social Security numbers for both you and any co-borrowers
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Copies of checking and
savings accounts statements for the past two months
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Evidence of any other
assets such as bonds, stocks, or money saved in
retirement programs (i.e. 401k or 403b program)
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Recent paycheck stubs
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W-2 withholding forms,
or income tax returns for the past two years to
verify your income and proof of employment
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The name and address of
someone who can verify your employment |
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Residence history for
the past two years |
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Sales contract for the
purchase of a new home |
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Homeowner's association
information with contact information if property is
a condo or part of a homeowner's association |
Cash Out Refinance
Cashing out refers to the refinancing of a loan where the
borrowers will borrow money on their own home. If a home is
appraised at $100,000 and the borrower's outstanding
mortgage loan is $60,000, it is possible to enter into an
80% cash-out refinance transaction for a loan of $80,000
(80% of $100,000). The new mortgage of $80,000 will pay off
the $60,000 loan and leave $20,000 cash-out to the
borrowers.
What are the benefits?
By cashing out on your home, you can obtain cash on the
value of your own home to pay off debts or upcoming
expenses. The refinance transaction can also provide you
with a better mortgage loan interest rate that will save on
your monthly mortgage payments during the loan. And it's
tax-deductible.
How can we help?
If you are looking for this type of refinancing, MSA
Mortgage can find a program suited to your financial needs.
We offer cash-out programs for Owner-occupied homes and
Non-owner occupied homes, with
affordable rates.
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