Ready for refinancing? Here’s the process. You must first tender your application by filling the required forms and providing the requested documents. Most lenders allow online applications, which makes it easier with paperless requirements.
On receipt of your application, the lender determines your capability by checking your credit scores, income, and debt-to-income ratio. Your loan repayment history is also considered. You can take a mortgage to refinance a loan anytime as long as you have repaid at least 20% of your current loan.
If your lender is satisfied with your application, they value your home to determine its loan-to-value coverage to take care of its exposure. On approval, you pay the closing costs and have your property charged to the lender.
Refinancing a mortgage affects the interest rate, period, and installment—a lower rate results in lower installments and shorter periods. If you increase the installment, you will reduce the period and, in effect, reduce the interest payable. Refinancing also takes the form of home equity financing and allows a cash-back for use in other projects.
Rocket mortgage is the best option if you prefer doing things online. The company facilitates an easy and fast online experience. Its excellent customer service places it at the top of JD Power rankings on customer satisfaction. Better Business Bureau also gives it a rating of A+ on trustworthiness.
However, you may be disappointed if you have a USDA loan because the company doesn’t refinance into it. It only refinances conventional, VA, FHA, and cash-out. In addition, it limits the credit score to 620 and above.
Veterans United does so well in refinance of VA, cash-out refinance, and conventional mortgages that it scored A+ in BBB rating. Therefore, it has the potential of ranking highly in JD Power if it was eligible. Its minimum credit score is 620, but you may consider this company to waive the requirement or take alternative credit if you have a poor credit score.
Its shortfall, however, stems from its inability to offer FHA or USDA refinancing. You will get a raw deal if you prefer face-to-face interaction and live outside its branch location.
With a credit score of 620, you can refinance your VA, FHA, conventional, and cash-out. If your score is poor or unavailable, you can apply with alternative credit. Application is made online on its easy-to-use website. However, you cannot finance into USDA loan.
Carrington Mortgage Services
Based on a score of 640, Carrington offers a variety of mortgage refinance options on conventional, FHA, VA, USDA, and a tailored Carrington Flexible Advantage. Carrington has an A+ ranking in trustworthiness. Despite a poor score, you may provide alternative credit to cushion that shortfall. You have to physically visit the branch as they do not accept online applications.
Bank of America
A decent score of 640 is all it takes to get refinancing with Bank of America. You get several refinance options from the second-ranked company in JD Power 2020 survey and A+ BBB ranking. In addition, there are plenty of discounts for existing BOA customers.
You can refinance into conventional, FHA, VA, and cash-out. However, BOA doesn’t refinance USDA and does not accept alternative credit forms in cases of low or non-existent credit scores.
The best mortgage lender should be affordable, trustworthy, customer sensitive, and reasonably meet your needs. When looking for the best home refinancing programs in Georgia, you should check their ratings from recently conducted surveys. For example, JD Power surveys rank customer satisfaction while BBB ranks trustworthiness by looking at a company’s honesty and transparency.
Although mortgage rates influence your choice of a refinancing option, other factors to consider are refinancing fees. Always ask the lender for a breakdown of fees and compare it with offers of other providers.
When processing a refinance, take note of the period and the likely eventualities that might affect your repayment. A maximum period of 30 years is best covered with a refinancing option in mind.