Refinance Loans

Refinancing a home mortgage can be a big decision for many homeowners. Your situation and needs change over time so why shouldn’t your mortgage?

Most Common Types of Refinance Transactions

Cash-Out Refinance

A cash-out refinance gives borrowers the flexibility to convert equity in their home to cash to use for all sorts of purposes:

- - Pay off higher interest rate debt
  - Make home improvements
  - Provide liquidity to meet personal financial needs

With a cash-out refinance there are no limitations to what you can use the funds for!

Rate-Term Refinance

A rate-term refinance allows borrowers the opportunity to restructure the remaining term of their mortgage to help meet individual goals:

Reduce monthly payments by extending terms.
Remove mortgage insurance premiums
Lower the interest rate

Can Closing Costs be Financed into the Mortgage?

Yes, provided that there is enough equity in the home to allow for the additional borrowing.

Are FHA Loans Eligible for Refinancing?

All loans are eligible to be refinanced provided that the home has enough equity. Refinances can be done as Conventional or FHA loans.

Find Out if Refinancing Is Right for You

Common Refinance Questions

Determining if a home refinance loan is right can be confusing. That’s why we’ve put together a list of common questions that homeowners have when considering refinancing.

What Are Points?

Points (or discount points) are a way of lowering your interest rate. By paying 1% of the total loan amount up-front, a borrower can lower his interest rate by about 1/8%.

How does the APR Differ From the Interest Rate?

The rate refers to what percentage of your loan you will pay in interest per month, whereas the annual percentage rate (APR) is an adjusted percentage that expresses the yearly cost and also includes certain charges and fees.

Can I "Lock-In" an Interest Rate on a Refinance Loan?

Yes. Now is the time to refinance because interest rates are so low. You can “lock-in” your rate today by contacting us.

How Long does It Take To Go Through the Refinance Process?

A typical refinance usually takes between 2 and 4 weeks. Getting your home appraised is usually where most hangups occur so if you can schedule a home appraisal right away then getting a refinance loan is usually very quick.

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.

How You Can Benefit From a Refinance

There are many refinancing options available, and the benefits of each are unique. Whether you’re looking to reduce your payments or consolidate your debt, we can help. Call or come in today to get your process moving.
Lowering your monthly payment

There are a few ways to lower your monthly payment, including obtaining a lower interest rate or extending the term of your loan. This is usually the primary reason for obtaining a refinance loan. Whether you’re looking to switch from a variable rate to a fixed rate loan or looking to pay less per month a refinance loan can help provide more stability and smaller payments.

Cashing-out equity

Many people would like to take advantage of the equity they have built up in their homes. When refinancing, it is possible to accomplish that while still reducing your monthly payments. Accessing the equity in your home is a great way to make some improvements in your life whether that be paying for college, renovating or remodeling your home, or even starting a business. For most people their homes are their greatest sources of wealth, so using that to its full advantage can make a big difference.

Consolidating debt

Refinancing can be useful in keeping your debt manageable by replacing a number of high-interest loans (such as credit card debt) with a single, lower-interest loan. You can take the cash that you gain from taping the equity in your house and paying off any kind of debt that you might have. Most people will try to pay off high-interest, non-deductible forms of debt such as credit cards or auto loans.

Dropping Private Mortgage Insurance

Depending on how much equity you have in your home you can refinance your home loan and possibly drop your private mortgage insurance. This can mean a lower overall monthly payment on your mortgage. If you think this might be the case please call us today at 877-781-7788 .

Other refinancing options

Points — By paying points up-front, you can reduce your interest rate. This may or may not be a good option for you. Those who see benefits from paying points upfront are those who plan on being in their homes for a while. A lower interest rate means a lower monthly payment. The longer you pay the lower monthly payment the more sense it makes to pay points up front.

Low-cost Refinancing

This option can eliminate some or all of the fees associated with refinancing, but also carries a higher interest rate than a standard refinance. It’s important to take all aspects of a new loan into consideration before refinancing. Our refinance professionals are ready to help you make the right decision. Let us help you determine if low-cost refinancing is a good fit for you.

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.

Refinance Checklist

When you refinance, certain documents and information will help the process move forward more quickly. Below are some of the more common documents needed to refinance. The more information you have on-hand, the faster your refinancing will go.

You are likely to need Employment Information

Most recent month’s pay stubs (originals)
W-2 forms—past 2 years’ (copies)
Income tax return information, especially if self-employed—past 2 years’ (copies)

Assets & Obligations Information

Checking, savings, or stock accounts; 401K information; etc. (copies)
Current credit score and reports
Debt data such as credit card or current mortgage information

Insurance Information

Homeowners insurance (copy, especially of the declarations page)
Proof of title insurance

These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.

What You Need to Know About Refinancing

People refinance for a number of reasons. You may like to consolidate first and second mortgages, get a lower interest rate, or lower your monthly payment. Perhaps you want to switch from an Adjustable to a Fixed-rate Mortgage, or to stop paying Private Mortgage Insurance (PMI). Maybe you’re just looking to cash out some of your equity for home renovations. Refinancing allows you to redefine your mortgage loan to better fit your current needs.

However, there are many things to consider before deciding to refinance your mortgage. With so many options it’s important to refinance the right way. At East Coast Capital Corporation we’re happy to show you all of your options so you can make the best decision on a refinance loan. If you would like to find out if a refinance is right for you give us a call today at 877-781-7788 .

Interested in Refinancing? Consider This…

Are you planning on moving soon or are you in it for the long-haul?
If you’re planning on sticking in your home for more than two years then a refinance mortgage is a great option. A refinance loan does require closing costs, meaning homeowners who plan to stay in their home for more than two years will usually make up for those costs with lower monthly payments. If you’re looking to move within the next two years then a refinance might be a good idea depending on how far your rate drops. Please contact us to see if a refinance works well for you.

Do you need to tap into the equity of your home?
For most people a home is their most important and substantial investment. History proves that home values increase over the long-run. If your home is now worth more than it was when you purchased it you can use a refinance loan to access that extra value and turn it into cash to pay for unexpected bills, college, or to start a business.

Is it time to grow your home?
As families grow, homes can feel smaller. Refinancing your mortgage is a great way to grow money for a home improvement project. The most attractive part of this is that a home remodel can increase the value of your home. This type of refinance can really pay for itself in the end.

Are the terms of your mortgage outdated?
It’s likely that your situation in life is not exactly what it was when you first closed on your home. If that’s the case then maybe your mortgage terms need a little updating too. Refinancing is a great way to switch from an adjustable to a fixed rate loan or to get into a 15 year loan as opposed to a 30 year.
Don’t pass up the chance to improve your mortgage situation today by calling our lending professionals to see if refinancing is right for you.
These materials are not from HUD or FHA and were not approved by HUD or a government agency and in some cases a refinance loan might result in higher finance charges over the life of the loan.