Maybe it’s time for a change
If you’re not thrilled with your current home loan, we encourage you to refinance with us. Our loan experts can help you take advantage of the best rates available. We have many different types of mortgages, so no matter what you’re in the market for, there’s a solution.
Loans you’ll love
Here’s just a few details that make refinancing with us a great choice:
No points, no fuss, no problem
- Borrow up to $625,500 with only 5% down (95% Loan-to-Value).
- Rates adjust just once every five years.
- Maximum lifetime adjustment never exceeds 5% over the initial rate. Rates adjust (up or down) a maximum of 2% during an adjustment period.
- Completely straightforward—no negative amortization, no balloon payments and zero pre-payment penalties.
- No closing costs*** also an option for loan amounts between $250,000 and $625,500.
The closing (or settlement) of the loan is an actual meeting that takes place at the Escrow Office, one of our branches, or at your home or place of employment. At that time, you'll be asked to sign the closing documents and pay any outstanding closing costs you are responsible for.
To help speed up a refinance requiring standard processing, here is a list of the information you should collect and have ready to provide once you accept our Loan Estimate (following the application). Original documentation, when requested, is preferred and will be returned to you promptly.
|Loan Application||Loan application form||Loan application form signed and dated by all applicants|
|Self-employed||Most recent two full years of tax returns (individual, and corporation, or partnership)|
|Other Income||Other income requirements||If Other Income is needed to qualify for the loan, supporting documentation and history of receipt may be a requirement.|
|Assets||Evidence of sufficient funds when closing||
|Obligations||Evidence of financial obligations (debts)||Copy of the fully-executed Divorce Decree indicating amount of child support, alimony, or separate maintenance payments|
Wise investors usually order a credit report to review its accuracy. This step gives them a chance to address any errors or mishaps before approaching the lender. As part of the refinance process, LBS Financial will eventually order your credit report, so it's a good idea to address it beforehand. Note that LBS Financial cannot use the credit report you have obtained and will need to order a credit report as well.
At LBS Financial, you'll find a number of home loans for every type of refinance. The goal here is to match the benefits of a specific loan type with your goals. So, let's first look at your goals or needs:
|Your Situation||Consider the following strategy|
|Have little cash||Equity loan|
|Need low closing costs||Ask about our no closing cost options|
|Want to lower your rate and payment but plan to stay over 5 years||Fixed rate loan|
|Want to lower your rate and payment and sell within 5 years||ARM|
|Add a room or other home improvements||Equity cash-out refinance or Home Equity Line of Credit|
|Want to avoid monthly private mortgage insurance||Loan-to-value at 80% or less on 1st mortgage|
|Financing a 2nd home (vacation)||30-year fixed-rate|
|Want consistent monthly payments||Fixed-rate loan|
You can usually lower the rate by paying more points. Points are fees paid to the lender at closing. Each point is equal to 1% of the loan amount. For a $100,000 loan, a point equals $1,000. Two points would be $2,000. If you have the cash, it's a good way to save money on interest over the life of your loan.
Below is a chart showing all of the types of potential closing costs associated with a home loan and which fees may be charged by LBS Financial, depending on your loan type:
|Customary Fees & Charges||LBS Financial|
|Loan origination fees||If applicable|
|Loan discount/origination points||If applicable|
|Document preparation fees||Yes|
|Credit report fees||Yes|
|Mortgage insurance||If applicable|
|Tax service||If applicable|
|Flood determination fee||Yes|
|Abstract or title fee||If applicable|
|Recording fee and transfer taxes||Yes|
During a refinance, you may have costs for adjustments or prorations. These are called pre-paid costs, such as property taxes, prepaid interest, and homeowner hazard insurance.
Yes! Provide our LBS Financial loan specialist with the details of your first and second mortgages, and we will present the potential options for consolidating your mortgages. Or apply online now!
Yes! Credit cards, car loans, student loans, revolving credit and other debts can be consolidated. An LBS Financial loan specialist will present the potential options for debt consolidation.
Comparing the features of each loan will help you reach the best decision:
|Cash-Out Refinance||Home Equity Financing|
|One loan and one monthly payment||Choose between a one-time loan advance or a revolving line of credit.|
|Your existing mortgage is refinanced for a higher overall amount using some of the accumulated equity in your home||You can borrow your home's equity as determined by the current value and less any existing liens on the property.|
|Get immediate cash and spread the payments out over a longer timeframe||Flexibility of a shorter term to help build equity faster OR reduced monthly payments by spreading the cost over a longer term.|
|Usually a lower interest rate than home equity financing||You can borrow more money - sometimes up to 80% of the value of your home. With a line of credit, interest is paid only on the money you actually use, and you can access it whenever you want without having to reapply.|
When you refinance your mortgage, you're actually replacing it with a brand new mortgage loan. Expect to go through a mortgage application process very similar to that of your original mortgage. Refinancing is often a sound financial choice that can allow you to meet a variety of needs, such as lowering your monthly payments; changing from adjustable to fixed rate loan; taking cash out of your current home equity; or eliminating private mortgage insurance.