Refinancing

 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. 

Benefits:

  • Reduce Your Interest Rate
  • Cash Out Equity for Home Improvements
  • Consolidate Debt
  • Lower Monthly Payments
  • Open a Business

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 provide:

  • Social Security numbers for both you and any co-borrowers
  • Copies of checking and savings accounts statements for the past two months
  • Evidence of any other assets such as bonds, stocks, or money saved in retirement programs (i.e. 401k or 403b program)
  • Recent paycheck stubs
  • W-2 withholding forms, or income tax returns for the past two years to verify your income and proof of employment
  • The name and address of someone who can verify your employment
  • Residence history for the past two years
  • Homeowner's association information with contact information if property is a condo or part of a homeowner's association