Quick Tips for Getting Started on Your Refinance

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Mortgage and Lending

 

When you refinance your existing mortgage, you are essentially paying off the existing mortgage debt and replacing it with a new loan. Many of the same costs are involved in refinancing a loan as are in first-time financing.

To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets, including your existing mortgage.

In order to expedite the paperwork process, start gathering the following items:

  • W2's from the last two years (For borrower and co-borrower, if you filed separately)
  • If you are self-employed, bring signed copies of your last two year's tax returns, including all schedules that were filed, and a profit/loss statement or balance sheet for the current year
  • Homeowner's insurance company name and number
  • The original lender's contact information
  • Most recent bank statements
  • Most recent statements from 401ks, IRAs, mutual funds and securities accounts
  • A copy of your current payment coupon for your existing loan, along with the outstanding mortgage balance

What costs are involved?

This is a brief rundown on fees that could be associated with a refinance loan:

  • Application Fee - A fee charged by the lender to process the loan application.
  • Appraisal Fee - This determines the current value of your home.
  • Credit Report - The fee the lender charges to pull your credit report.
  • Title Search and Title Insurance - You may be able to get your current title company to reissue a new policy and save money in this area.
  • Survey - The lender may order a property survey to document the current status of the land your property is on.
  • Loan Origination Fee - A fee the borrower pays the lender to underwrite the loan. Usually expressed in the form of points.
  • Discount Points - One point is equal to one percent of the loan amount. You may want to pay discount points to secure a lower interest rate.
  • Miscellaneous Fees - VA and FHA loans may have fees associated with them. Private mortgage Insurance (PMI), document preparation fees, notary fees and tax service fees may also fall under this category.
  • Prepayment Penalty - If your existing loan carries a prepayment penalty clause, you will have to pay a percentage of the outstanding loan amount for paying the loan off early.

Just as you encountered in your original loan, your lender will be required to provide you with a Truth-in-Lending Statement that outlines the fees associated with your new mortgage loan. Let us help you evaluate your personal situation and assist you in finding the loan program that works best to meet your long-term goals.


Call me directly for a free consultation.

Karl Peidl
Superior Mortgage Corp
Augusta Professional Center 854 S White Horse Pike
Hammonton, NJ 08037

800-706-6671 ext 4349

kpeidl@supmort.com

www.karlpeidlsmc.com

http://www.facebook.com/newjerseymortgages

 


Superior Home Mortgage Corp. licensed in DE, FL, GA: Georgia Residential Mortgage Licensee #14511, MD, MI, NY: Licensed Mortgage Banker - NY State Banking Department, NC, PA, SC, VA: Virginia State Corporation Commission License # MLB-566, & DC. Superior Mortgage Corp. licensed in CT, MA: Mortgage Lender License # MC3208, NJ: Licensed Mortgage Banker - NJ Department of Banking, RI: Rhode Island Licensed Lender & Broker, & TN. SHM Mortgage Licensed by the New Hampshire Banking Department


 





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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Karl,

It's been awhile since I was in Hammonton.  I sure miss Jersey produce!  (Not to mention the shore...)

Mike in Tucson

Jul 08, 2009 02:35 AM #1
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Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Hi Mike,

Thanks for reminding me that I need to stop at the produce stand today.  This is the perfect time to be here.  We are near the end of blueberry season, in the middle of peach season, and at the beginning of corn season.  It doesn't get any better.

Jul 08, 2009 02:41 AM #2
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