TAG Team Refinance & Loan Options

Lowering your payment, decreasing your term, or utilizing the equity you've built up over time to get cash out of your property are all reasons to refinance your mortgage. The decision to refinance your property is based on a variety of criteria:

• Have you built up enough equity in your home?
• Is the interest rate on your house loan lower now than when you initially obtained it?
• Do you intend to live in your house for a long time?

To explore if refinancing your house can help you achieve your goal, speak with a Home Loan Expert or use our refinance calculator.

When you refinance your house, you're taking out a new loan with new terms. You'll need a loan that fits one or more of the following requirements to minimize your monthly payment:

1. A Lower Interest Rate: The higher your interest rate, the more you'll pay for your mortgage now and in the future. If you don't shorten your mortgage term, a lower rate equals a cheaper payment.
2. Gets Rid of Private Mortgage Insurance (PMI) — If you didn't put down 20% on your first house, you're probably paying private mortgage insurance (PMI). You can refinance to get rid of this expensive monthly payment if the value of your home has grown and you have adequate equity.
3. Refinance to a Longer-Term Loan — Refinancing to a longer-term loan allows you to spread your debt over a more extended period. While you will pay more interest in the long run, your monthly payment will be lower.

The appraised worth of your home minus the amount you still owe on your loan is known as home equity.

The more equity you have, the better the refinance interest rate you can get, thus lowering your monthly payment. Private mortgage insurance (PMI), a pricey monthly tax included in many mortgages with a down payment of less than 20%, can be eliminated if you have enough equity. Use our refinance calculator to discover if you have enough equity to refinance and earn a reduced monthly payment.

A list of documentation often requested throughout the refinance application procedure is as follows:

• Proof of income: Original pay stubs for the previous 30 days are usually required
• Copy of homeowners insurance: Checks to see if your house insurance is up to date and adequate
• Copies of your W-2 forms: Each loan application must complete this form, which assists your lender in verifying your previous employment and income history
• Copies of asset information: Including accounts holding money for closing costs, statements for savings, checking and 401(k) accounts, and investment records for mutual funds or stocks
• Copy of title insurance: Helps your mortgage lender verify taxes, names on the title, and legal description of the property