Refinance Rate & Term
When people talk about refinancing their home or doing a “refi” they are generally referring to what’s known among mortgage lenders as a “Rate and Term” Refinance or a “Regular Refinance”. This type of finance is the most uncomplicated type of home refinance because it’s loan purpose is to 
lower your interest rate, shorten your loan term to pay off your home faster or lock in a fixed rate of interest.
With home values being so high in California, the team at Integrated Lending group has helped thousands of California homeowners save money on their home loan. Some of the specific reasons we see for regular mortgage refinancing are:
- Lower your rate for a lower payment for increased monthly cash flow. Since real estate values are so high in California, when rates drop by as little as .125% you can save thousands over the term of your home loan.
Shorten the term of your loan to pay off your mortgage sooner. By going into a lower term mortgage your payment typically goes up, however the trade off is payoff sooner and pay less interest over the term of the new mortgage.
Switch from an adjustable rate to a fixed rate. This is useful as it eliminates the variability of an adjustable rate mortgage by locking in the rate for the term of the new mortgage.
Refinance from FHA to Conventional for a lower payment. With meeting qualifying criteria and with increases in value, you could refinance out of FHA and lower your payment by eliminating the FHA mandatory PMI.
General Qualifications for a Refinance:
- Typically a 620 or higher credit score
A debt ratio of 50% or less based on gross income
A Loan To Value (LTV) of up to 95% upon completion of the Refinance
Documents Typically needed for a rate and term refinance:
Your most recent W2 form
One month paycheck stubs
Two most recent bank statements
If you’re self employed, tax returns and some business information may also be needed
With today’s technology and automation sometimes these typical documents are no longer needed. Your Integrated Lending Group mortgage loan professional will guide you to make the process as efficient and transparent as possible.
