Getting Started

Refinancing refers to the replacement of an existing home mortgage with a new home mortgage under different terms. 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, debt consolidation and financing your start-up business.

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How it Works

Mortgage Refinancing in Denver: Benefits, options, and how to decide

Refinancing a mortgage loan is a choice when a homeowner is looking to improve their current financial standing. There are several reasons why refinancing could be a solid idea: to take advantage of lower interest rates, to free up more cash for outstanding credit bills, to increase their home equity or other purposes.

When a homeowner refinances their mortgage, they replace the mortgage loan agreement they took out when they originally bought their home. A refinanced mortgage agreement may reflect a lower interest rate on the loan or change the amount of time the homeowner must repay the loan in full.

Does it Make Sense to Refinance?

Today’s mortgage is not a “one-size fits all”. Each one of our customers comes to us with unique needs and we provide mortgage options accommodate those personal needs. We take a holistic approach to financing to ensure that the liability is managed as strictly as you manage your assets. You can expect to receive a the financial plan to accommodate your refinancing goals that blends with your financial plan.

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.

Just imagine what you could do with an extra $100, $300 or more each and every month. You might decide to apply the savings toward your balance and build equity faster. Or maybe you just might want to put the money in your savings account or portfolio and watch it GROW! The best thing is. you’re in control . You decide what is best for your family!

Benefits of mortgage refinancing in Denver

Refinancing the terms of your home loan can help you in several ways:

  1. Lower your scheduled payments. The most common reason homeowners refinance is to reduce their monthly mortgage costs. After recouping refinancing fees, the money saved with these new payments can be substantial.
  2. Lower your interest rate. Switching from an adjustable to fixed interest rate (or vice versa) can decrease the added fees incurred in mortgage payments. Even a single-digit percentage decrease can have dramatic results on your monthly finances.
  3. Build home equity faster. If you change from a 30-year financing arrangement to a 15-year one, you’ll load up your home’s equity much more quickly, and typically at a lower interest rate.
  4. Pay off your home faster. The monthly payments on a 15-year mortgage are higher, but you’ll pay off your loan in half the time.
  5. Free up more cash. Refinancing can increase your cash on hand. In addition to the potential difference in monthly payments, cash-out refinancing lets you draw money from your home equity.
  6. Increase your financial stability. With the money you save on lower interest rates, refinancing can help you consolidate your other existing debts and pay them off more efficiently.

The Process for Mortgage Refinancing in Denver

In order to refinance you will need a current appraisal, analysis and in many cases verification of your income and assets, as well as most of the same paperwork required when you originally financed your home. Adequate property insurance and new title insurance is necessary.

Deciding to refinance requires a few steps to evaluate your preparedness.

  1. Define your goals. What’s the primary reason for refinancing your home? Whether it’s to simply debt repayment, free up cash for major purchases, draw from home equity or any other reason, mortgage lenders can devise the best way to suit your goals.
  2. Obtain your credit history. You need to qualify for refinancing, of course, and one of the key factors is your credit score. Get copies of your credit report and reconcile any errors you may find.
  3. Calculate your existing home equity. Subtract your home’s present worth from your current mortgage balance—the result is your home equity. If you don’t know your home’s current market value, online valuation tools or a real estate professional may be able to help.
  4. Compare multiple lenders. It pays to shop around for mortgage lenders. Check each one to see how much they charge in upfront costs and transactional fees, along with interest rates and other policies they may have.
  5. Gather your financial records. Get all the documentation you can—tax returns, pay stubs, account statements, lists of your assets and liability, and so forth. You’ll need to supply an accurate and honest summary of your current financial situation, so it’s best to be transparent.
  6. Get an appraisal. Some lenders may require a home appraisal before approving new finance agreements. Make sure to inform the appraiser of improvements you’ve made to your home, as they could boost its market value. You can also use an appraiser to determine your home equity as described above.
  7. Negotiate closing costs. You’ll be responsible for some of the administrative costs of refinancing your home, so you’ll want to get the best arrangement possible. Sometimes the best choice is to pay all fees upfront, but some lenders may offer alternate solutions that will lower your closing costs.

Prequalification occurs before the loan process actually begins. The lender gathers information about your income and debts, and makes a financial determination about how much house you may be able to afford. It’s a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the pre-qualification process should help you decide whether refinancing is a good idea for you.

The application is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. You complete a mortgage application for a particular loan program and, supply all of the required documentation for processing. Various fees and down payment options are discussed at this time. The loan officer will deliver a Good Faith Estimate (GFE) and a Truth-In-Lending Disclosure (TIL) within three days that itemize the rates and estimated costs for obtaining the loan.

The lender will typically submit the application package to an automated underwriting system that will provide the lender with the necessary documentation needed for loan approval. In some cases, the lender may also manually underwrite an application package. The lender’s processor reviews the credit reports and documentation to verify your employment, debts, and payment histories. If there are unacceptable late payments, collections, judgments, etc., the processor requests a written explanation from you. The processor also reviews the appraisal and survey and checks for property issues that may affect final loan approval. The processor’s job is to put together an entire application package for the lender’s underwriter.

The lender’s underwriter is responsible for determining whether the application package prepared by the processor meets all the lender’s criteria. If more information is needed, the loan is put into “suspense” and you will be contacted to supply more documentation. If the underwriter approves the loan, the lender issues a conditional commitment to lend, orders title insurance, works with you to clear all conditions to its commitment to lend, and then schedules a closing time. Conditions to the lender’s commitment may include issues with credit, income, or the property that may arise during the processing and underwriting process.
The closing will occur after all conditions are cleared and the lender issues a full loan approval. At the closing, the lender “funds” the loan with a cashier’s check, draft or wire to the closing agent, who disburses funds, in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the house, subject to the lender’s loan. Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney’s office, while others use a title or escrow company. You may also be able to close at your home.
After closing, we keep a database of important factors such as interest rate, term and your financial goal so that we can keep you aware of future dips in rates so that you can continue to achieve your goals as a rapid place. We watch the markets daily and when there is an market spike we notify you so that you do not miss an opportunity.

Secure the Best Rate for Your Denver Refinance Solutions

The better your credit score, the more options you’ll have when it comes to interest rates. Maintaining excellent credit is an effective way to obtain lower rates for your refinancing, so the surest method to achieve an affordable interest rate is to stay on top of your credit and debt bills.

It’s also important to keep your refinancing agreement manageable. Refrain from borrowing more money than you need; take time to understand your current finances and decide what you can comfortably afford. A shorter-term loan will also cut your interest rates—so if you’re currently under a 30-year loan agreement, think about switching to a 15-year loan to get a lower rate.

When Denver Refinance Solutions Are Good Options

Some homeowners opt to refinance their mortgage rates when they’re having trouble meeting their other monthly bills and want to free up more cash to pay them. They could refinance their mortgage to take care of a sudden financial emergency or have more resources to make a big purchase like a car. Refinancing Is also a possibility when one is expecting to move soon.

Others refinance their mortgage to take advantage of reductions in interest rates. If you’ve noticed a decrease in mortgage rates that go sharply below what you’re paying now, refinancing might be a good idea. It’s also a solution if you simply want to build home equity more quickly.

Benefits of Refinancing

  • 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
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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 your lender:

  • 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
  • Sales contract for the purchase of a new home
  • Homeowner’s association information with contact information if property is a condo or part of a homeowner’s association

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We work to understand your individual needs and provide you with the options that fit into your entire financial plan. Schedule a Free Mortgage Refinance Consultation today.

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