This Cookies Policy explains what Cookies are and how We use them. You should read this policy so You can understand what type of cookies We use, or the information We collect using Cookies and how that information is used. Cookies do not typically contain any information that personally identifies a user, but personal information that we store about You may be linked to the information stored in and obtained from Cookies. For further information on how We use, store and keep your personal data secure, see our Privacy Policy.We do not store sensitive personal information, such as mailing addresses, account passwords, etc. in the Cookies We use.The primary reason to refinance is to secure a lower interest rate, which can reduce your monthly payment and the total interest paid over the life of the loan. However, other strong reasons include changing your loan term (e.g., from a 30-year to a 15-year), converting from an adjustable-rate to a fixed-rate mortgage, or tapping into your home’s equity for cash.
Being prepared speeds up the process. Typically, you’ll need recent pay stubs, W-2s, tax returns, bank statements, and documentation for any other assets or debts. Getting a precise list early helps you gather everything efficiently.
The form is broken down into clear sections:
Loan Terms: Details like loan amount, interest rate, and monthly principal/interest.
Projected Payments: An estimate of your total monthly payment, including mortgage insurance and estimated escrow for taxes and insurance.
Closing Costs: A detailed table of all the costs you will pay at closing, separating lender fees from third-party fees.
Comparisons: Key metrics to help you compare loans, like the Annual Percentage Rate (APR) and Total Interest Percentage (TIP).
Other Considerations: Information on assumptions, late payments, and servicing of the loan.
Conforming Loan: A mortgage that meets the loan limits and guidelines set by Fannie Mae and Freddie Mac. These loans often have competitive, standardized rates.
Jumbo Loan: A mortgage that exceeds the conforming loan limits. Because they are larger and considered riskier for lenders, jumbo loans typically have higher interest rates and stricter credit requirements.
The most common reason for a monthly payment increase is an escrow shortage due to a rise in your property taxes or homeowners insurance premiums. After the annual escrow analysis, if a shortage is identified, your lender will increase your monthly payment to cover the higher anticipated costs and to replenish the account.
