Refinance FAQ | Questions about Refinancing - Cash Out - Rate and Term

Refinancing is important when you’re converting an adjustable loan into a fixed one.

Although such a conversion raises your interest rate initially, there are no further increases involved. When debt consolidation is concerned, your overall loan balance and payments may go up, but you can eliminate all monthly obligations. Contact a licensed loan officer at Amax Lending .com before making the final decision.Start your Pre Approval

How much can Refinancing help Save?

It really depends upon the circumstances of your case. If your current interest is higher than the prevailing market rate, refinance is a better option and makes sense.

The amount saved will depend upon the difference between the previous and the revised interest rates. For all practical purposes, it is best to talk to our team or use our calculators to determine the cost- saving incentives, if any, for refinance.

Is refinancing possible with a second mortgage on home?

In a typical arrangement, second mortgages are often paid off by means of refinancing. Amax Lending .com consolidates both the loans into one first mortgage so as to make only one payment a month.

If you wish to keep your second mortgage unaffected, we can negotiate with the second mortgage lender to allow us to refinance the first loan without any repercussions on the second one. This process is also known as subordination and involves a marginal fee.

How much does Refinancing Cost?

All fee associated with refinancing tends to vary from lender-to- lender. However, there are certain expenses all lenders charge. These include 3 rd party fees such as title, notary, credit report, escrow and other recording fees. Appraisal and lender fees, including processing and underwriting charges, also apply.

If you decide to pay points to lower the interest rates, each point costs 1% of your revised loan amount. Apart from the closing fees, there are other pre-paid costs for interest, homeowners insurance and property taxes involved.

If you have sufficient equity in your new home, you can easily add up all pre-paid costs and fees to your new loan.

Are there any documents required for refinancing?

For a standard refinance transaction, certain information regarding your income is necessary. This includes W-2s for the preceding two years and paystubs for the most recent 30 days, bank and/or mutual fund statements up to the last 60 days, asset information and loan information.

Other documents, such as homeowner’s insurance declarations and mortgage statements may also be required. Contact Amax Lending .com to learn more about the documents needed.

Is it possible to refinance on bad credit?

There are several loan options offered to individuals with a bad credit report, owing to the reasons as to why the credit report is unimpressive. To learn more about refinancing on a bad credit report, contact any of our loan officers today and determine which loan program you qualify for.

Can refinancing truly lower the rate to at least 0.5%?

When it comes to refinancing, there is no rule-of-thumb with regards to interest rates and credit periods. Switching to fixed loans, from adjustable loans, results in higher interest rates.

In contrast, restructuring home equity for debt consolidation and structural improvements reduces overall monthly outflow. Hence, refinancing does not necessarily bring the interest rate to as low as 0.5%, but there may be some cases where the statement holds true.

Call us today and find out more about such instances.

How long does refinancing take?

Most of the refinance transactions take nearly 30 days to complete, from the date of submittal of all necessary documents and records. Amax Lending .com offers a smooth and easy loan process that allows us to close all loans much faster than the industry turn-times. Once you have submitted all the documents, you can rest assured that your loan closing will take place within 30 days of your initial application.

What is Loan Closing?

The loan closing date is when your loan application has been fully processed and all your loan documents are ready to be handed over to you. This requires a signature from you, which can be done either at your home, an attorney’s office or an escrow office. This signing will take place in the presence of a signing authority. You also need to submit a cashier’s check to pay the closing fees and all other closing funds needed to complete the transaction. For any further queries, please contact us today!