Frequently Asked Questions

There is no standard answer to this. What matters is your SPECIFIC situation and WHY you want to refinance. Our Superhero Team can help you determine if it makes sense!

This is when you pay EXTRA money to get a lower interest rate.

This all depends on how much you pay, how much lower your payment ends up being, and how long it takes you to recoup the extra you paid. Our Superhero Team can help you with this!

The annual percentage rate (APR) is an interest rate reflecting the cost of a mortgage as a yearly rate...Confusing? Yes, we know. This APR rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other closings costs. The APR is designed to measure the "true cost of a loan." 

The APR does not affect your monthly payments. Your monthly payments are strictly a function of the interest rate and the length of the loan. Just FYI, because APR calculations are affected by the various different fees charged by lenders, a loan with a lower APR is not necessarily a better rate. 

Mortgage rates can change from the day you apply for a loan to the day you close the transaction. If interest rates rise sharply during the application process it can increase the borrower’s mortgage payment unexpectedly. Therefore, a lender can allow the borrower to "lock-in" the loan’s interest rate guaranteeing that rate for a specified time period, often 30-60 days, sometimes for a fee.

The bottom-line... if you want to prevent your rate from increasing during the process, "lock-in" a rate ASAP.

The specific documents that are needed will vary depending on your specific loan program and your specific financial situation. GENERALLY speaking most loan programs at a minimum will need:

> Most recent full month of paystubs

> Most recent 2 years of W2s and/or 1099s

> Most recent 2 years of tax returns and all schedules

> Most recent 2 months of bank statements and other asset statements like retirement accounts

> Non-expired Government-issued ID

If your specific situation entails a divorce, child support, bankruptcy, foreclosure, etc additional documentation will be needed

This LARGELY depends on the loan program. Some loan programs are tailored toward HIGH credit, some tailored toward LOW credit, some tailored to NO credit, some tailored to DAMAGED credit.

Being that we have SUPER Loan Programs, we have solutions for far more SUPER People than any other mortgage company in the country.

Here is the general "rule of thumb" for what determines your credit score. So if you'd like to improve your score, you want to improve these areas:

> 35% Payment History
> 30% Amounts Owed vs Max Allowed Credit
> 15% Length of Credit History
> 10% Types of Credit in Use
> 10% New Credit

The two FASTEST ways to increase your score are #1, make sure EVERY payment is On-Time, and #2, even if you pay off the credit card every month, do not let your charges get close to your available credit line.

An Appraisal is an estimate of a property's fair market value. It's a document generally required (depending on the loan program) by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The Appraisal is performed by an "Appraiser" typically a state-licensed professional who is trained to render expert opinions concerning property values, its location, amenities, and physical conditions.

On a conventional mortgage, when your down payment is less than 20% of the purchase price of the home mortgage lenders usually require you get Private Mortgage Insurance (PMI) to protect them in case you default on your mortgage. Sometimes you may need to pay up to 1-year's worth of PMI premiums at closing which can cost several hundred dollars. 

Some loan programs like FHA and USDA always have MIP (mortgage insurance premiums) which are similar to PMI.  FHA, USDA, and VA Loans (in most cases) also have Funding Fees or UFMIP (upfront mortgage insurance premium) that are built into the loan.