We've done our best to create a Web site that anticipates and satisfies our customers' needs. With that goal in mind, we've compiled a list of frequently asked questions. If you do not find an answer to your question here, please contact Fred Terry at (757) 589-0952 or via e-mail: fred@refinancewithfred.com.
Here are a few of the top 10 Questions and Answers when considering mortgage refinancing:
1. How
do I qualify?
2. How long does the process take?
3. What is Equity and how can I get cash?
4. What will my interest rate be?
5. What does the term “LTV” mean?
6. How does my employment history effect my approval?
7. What is the difference between Fixed Rate and ARM?
8. I am self-employed, how does that affect my chances
of being approved?
9. How does Bankruptcy or bad credit affect my chances
of being approved?
10. Why should I Refinance with Fred?
1.
How do I qualify?
There are several ways to begin: Click on the APPLY FOR LOAN link, or
call (757) 589-0952. The application process takes about five minutes
to complete. We will contact you with in 24 hours to present our offer.
This is a free, no obligation mortgage analysis.
2. How long does the process take?
The refinance process can take as little as 2 weeks or as many as 6 weeks
depending upon the situation.
3. What is Equity and how can I get cash?
The net value of your home that you owe free and clear. If your home is
worth $185,000 and you owe your current mortgage company $115,000 then
you have $70,000 worth of equity in your home. Of that $70,000, you can
refinance or home equity finance which will allow you to borrow money
using your home as collateral. You may obtain a loan to do much needed
home improvements, pay college tuitions or consolidate higher interest
debts.
Using the equity in your home allows you to consolidate debts and simultaneously
get cash in hand. If the value of your house is $100,000 and you owe $70,000
there is $30,000 worth of equity. With that $30,000 you can pay off debts
and get the available cash for home improvements or to use at your discretion.
4. What will my interest rate be?
Interest rates are determined by your credit rating, mortgage payment
history and loan program type. Additionally the Loan-to-Value, property
type and amount of cash out all play a determining factor when calculating
the interest rate. However, we will provide the lowest possible rate for
our clients.
5. What does the term “LTV” mean?
LTV or Loan-To-Value means the amount financed verses true value of the
property. If the home is worth $100,000 and you are approved for a loan
amount of $80,000 then your LTV will be 80%.
6. How does my employment history affect my approval?
It is very important to have a strong employment background, however for
the homeowner that doesn't have job stability we have a few loan programs
that may accept the situation.
7. What is the difference between Fixed Rate and ARM?
A Fixed rate will stay the same for the term of the loan, however an Adjustable
Rate Mortgage ARM will be fixed for 2 or 3 years then will adjust. If
a customer does not have strong credit an ARM provides a better opportunity
to rebuild your credit to within 2 or 3 years become eligible for a lower
fixed rate.
8. I am self-employed. How does that affect my chances
of being approved?
There are numerous programs structured specifically for the self-employed
borrower.
9. How does Bankruptcy or bad credit affect my chances
of being approved?
There are several programs structured specifically for homeowners that
have not so perfect credit including, but not limited to, previously filing
Bankruptcy . This excludes current Chapter 13 Bankruptcy which has not
been paid off.
10. Why should I refinance with Fred?
Mr. Fred Terry has over 8 years of experience in the mortgage industry
and has access to over 100 different loan programs for borrowers in all
situations.