need help with refinancing?
“You said you’d get it done and you did. Thank you, you’re my refi hero. It was great working with you.”
Why refinance your home?
Maybe you’ve been in your home for a few years now, and things have changed. Interest rates may have fallen lower than they were when you financed your home, or perhaps your financial circumstances have improved due to being more established in your career. Either way, your current mortgage is a little more pricey than you would like, or maybe you have a couple mortgages that you would like to consolidate.
To understand refinancing, you have to take a step back and examine how a mortgage loan works. When you first got a loan to buy your home, your lender financed your home loan—they paid a lump sum for your home, and in turn you agreed to pay off that debt in monthly installments in the form of your mortgage. Now, refinancing means replacing your existing mortgage loan by taking out a new loan to pay off the first one.
PMG Home Loans can help you identify your refinancing loan options. This process works in much the same way as it did when you got your original mortgage. You provide us with financial documents detailing your income for the past couple of years, and we help you fill out a loan application. If you qualify, we authorize a loan under specific terms that allows you to refinance your old loan, allowing you to take advantage of lower interest rates and better repayment terms.
How to get a PMG refinance loan.
First, give us a call or fill out our contact form, so we can talk and make an appointment to meet with you. When you sit down with PMG, we’ll review your current loan, discuss your reasons for financing, and identify some refinance options that may be right for you. After you’ve selected a loan that you like, we’ll begin the process of helping you apply for a refinance loan.
Just like when you applied for your original mortgage loan, we’ll need information from you showing how much income you have, your financial assets, any debts you have, and so on.
Info to Have When Applying for a Refinance Loan
Proof of Income: You’ll definitely want to make sure you have W-2s and tax statements from the last two years. Recent pay stubs are also helpful. If you’re self-employed, it may be necessary to provide balance sheets or other documents detailing your business’s financial circumstances.
Mortgage Details: We’ll need to know how much you still owe on your mortgage, the current payment terms, and contact information for your lender.
Assets: It isn’t just what you make, it’s what you have. You’ll want to make sure that you have bank statements, summaries of retirement funds like 401(k)s and IRAs, and any other relevant information.
Homeowners Insurance: We’ll also need information about your current homeowners insurance policy and contact information for your insurance company.
lower interest rates
If you currently have a fixed-rate mortgage, maybe interest rates are lower than they were when you got your initial loan. Or perhaps you have an adjustable-rate mortgage where the rates are going up, and you’d like to shift over to a fixed-rate loan where the rates won’t increase over time.
By Refinancing your total finance charges may be higher over the life of the loan.
reducing monthly payments
It can be a financial squeeze to get a home loan, especially when you’re in the process of starting a family or even a new career. It’s not uncommon to be a little “house poor” during the first few years. Refinancing can be a good way of reducing your payments so you have more money for day-to-day costs, investing for retirement, or just living a little better.
Paying off your loan faster
When you first got your loan, a 30-year mortgage may have been your best option from an affordability standpoint. But now a 15-year loan may be financially feasible, and a great way to significantly reduce the amount of interest you’ll pay.
Paying off high-interest debts
Pulling equity out of your home isn’t always a good idea. It can be fun to have extra spending money, but you really want to consider your financial goals before doing a cash-out refinance. But if you have high-interest debts to pay off or home renovations to finance, a cash-out refi can make a lot of sense.
Think it's time to refinance your home? PMG makes it easy.
PMG Home Loans will work with you to find the refinance loan option that’s right for you, and walk with you step-by-step through the entire process. Contact us today!