HOW TO REFINANCE YOUR HOME

Refinancing your home is a very similar process to buying a home for the first time. The main difference is that as long as you have a big chunk of equity in your home you will not need to have cash for a down payment. 

You will still need to have your credit pulled and you will still need to provide your last 2 years of taxes, your pay stubs, bank statements, and other documents that may be requested by the underwriter while processing your mortgage refinance loan. 

While your home loan refinance in Las Vegas is being processed it will be very important for you to not open up any new credit lines or do anything that could change your financial situation because those things could cause your home loan refi to be denied. 

When you initially purchased your home through a mortgage, that mortgage was written based on the interest rates for real estate loans at the time you made the loan as well as your credit and employment information. Today's mortgage rates may be lower or it might be time to refinance out of an FHA Loan and into a<a value="conventional-loans-las-vegas" label="" type="page" href="/conventional-loans-las-vegas" data-runtime-url="/conventional-loans-las-vegas"> Conventional Loan in order to drop your mortgage insurance if you have enough equity in your home to do so. You may have gotten a better job or had household changes that allow extra disposable income. If you have been in your home for over two years, you may be eligible for refinancing your mortgage.  There are fees involved in doing so but if you would like to draw out equity or take advantage of interest rates that are likely lower than when you financed it to start with, refinancing may be a good option for you. 

In most cases, you will not need to put any money towards a down payment on a home loan refinance.  Most of the time, when you refinance your home, there will be a significant amount of equity in the home, which functions as security to the lender on the refi, much as your down payment would on a home purchase.  Some exceptions could be if you just recently purchased a home and have little or no equity and you are refinancing your home to get a lower interest rate. In this case, especially if the appraisal comes in low, you may need to bring some money into the closing of the refi. 

You may also need to bring cash in at closing for closing costs which are typically about $3500-$5500.  More of the time, we can finance your closing costs into the refinance loan for you, but if you have the money and would rather pay that upfront, you always have that option. 

At PIF Lending, we can easily help answer questions about how much a refi will cost and if it's worth it for you to pay the fees related to refinancing your home or not. Please call us today at 702-421-1111, so we can help.

Refinancing your home mortgage often results in lower monthly payments and may even help to pay the mortgage off sooner. Many people look at refinancing as an option when they have an adjustable-rate mortgage that is due to reset. There are many factors that need to be reviewed besides a lower interest rate and lower monthly payments when looking at refinancing a mortgage. Most refinancing programs require that you have held the current mortgage for a specific period of time, like 6 months, and you need to make sure there is no pre-payment penalty o the loan as well. It also requires that the borrower(s) be able to meet the income and credit requirements currently standard for the new mortgage being requested.

You need to know the initiation fees and closing costs on the new mortgage and if there are “points” that are added to the new interest rate. Finding out the fee to do the refinancing, along with actual costs and potential savings, will indicate if refinancing is a good option and will pay off, depending on how long you plan to stay in the home. An experienced mortgage broker can easily help you compare your current mortgage with the current refinance mortgage rates Las Vegas offers.

A cash-out refi is when you either have a significant amount of equity in a property from the home appreciating over time or you have already paid in a substantial portion of the total original loan amount towards the mortgage and you want to take some of that money out. Some people choose to take cash out of their home equity to use for paying off credit card debt or even doing home improvements or other debt consolidations. 

A Refi vs Cash Out Refi is when you get a new loan on your current home for either the purpose of getting a lower interest rate or having a new loan for the amount you currently owe on the home vs what you owed when you first bought the home. Sometimes, a refinance happens for both of those reasons. When you refinance your home into a lower interest rate with a much lower loan balance the result is typically a much lower monthly payment for the same home.

Another common reason that mortgage borrowers choose to refinance a home is that they may have purchased the home with an FHA loan which requires PMI or private mortgage insurance for the life of the loan. In cases like this unless the FHA loan was originally done with a 10% down payment the only way to remove the PMI after 20% equity is gained or paid into the home is for the property to be refinanced into a Conventional Mortgage Loan. 

Refinancing into a Conventional Mortgage has its benefits and its drawbacks which is why it's so important for us here at PIF Lending to help you understand if this type of refinancing is right for you. Refinancing from an FHA Loan into a Conventional Loan might mean you are going to have a slightly higher interest rate unless mortgage interest rates are lower on both loan products than when you bought your home with an FHA Loan. The good part about refinancing from an FHA Loan into a Conventional Loan is that as long as you have 20% equity at the time of the refi you will no longer be paying mortgage insurance or PMI which could potentially lower your total payment by hundreds of dollars a month. 

A HELOC stands for "Home Equity Line Of Credit"

and there are some major differences between the two loan types.

A Cash Out Refi vs a HELOC means that your original loan will be paid off and a new loan under new terms like an updated interest rate and length of terms, much like applying for a whole new mortgage. The balance after the first loan is paid off or the difference between the new loan and what was previously owed is paid to you by the lender. 

A HELOC or home equity line of credit has little or no closing costs and becomes a second mortgage in the second position behind your primary mortgage. Typically a HELOC has a ten-year draw period where you can take money out. After ten years, the repayment period starts, and you have 20yrs to repay the loan and interest. 

Yes! You can refinance your mortgage as many times as you want or need to do so as long as at least 210 days or 6 months have passed. Most people won't have a need to refinance a home over and over again, but one example of why someone would do more than one refinance is this.. 

Let's say you bought a new construction home from a builder, and that builder gave you a big chunk of money to use in the design center or took a good amount of money off the purchase price of the home for using their preferred lender, but the builder's lender had a higher interest rate than you would get here at WCMG. After 6 months, we could refinance your home into likely a much lower interest rate so that you are able to keep all the builder incentives and still end up with a super low-interest rate on your mortgage loan. 

Depending on how long you intend to live in the home, this might be a great refinancing option. Since there are costs involved in any refinance, we are happy to do some calculations for you to ensure that it will be worth the cost to refinance your home loan. 

A good mortgage broker in Las Vegas, like WCMG, will be happy to help you calculate your costs and take a serious look at whether or not refinancing is a good idea for you. They will also be able to advise you if you are eligible for an FHA streamline refinance of your Las Vegas mortgage.

WCMG can work with you to find the best refinancing package available. There is a bit less stress and some time that can be taken during a refinance since the stringent timelines and deadlines of a purchase loan are not the same when refinancing. We will also know mortgage rates available for residents of Las Vegas over the next 30-90 days and what trends are upcoming for mortgage rates in Las Vegas.

Yes, absolutely you can refinance an investment property!  Refinancing an investment property is actually one of the best uses for refinancing a home loan. Many investors buy a property and over time the tenant pays down a very substantial part of the original mortgage or pays the home off entirely over time.

 If the property will continue to be rented out this is a great reason for a cash out refi! The money that you are given by the lender from the cash-out refi in most cases is completely tax-free and by having a new loan on the property with interest being paid you can write the interest off on your taxes as well. The tax-free money taken out from the cash-out refi can now be used to purchase another property. Just make sure the new mortgage payment will be covered by the monthly rent the tenant pays to rent the property or make sure the new investment you put that cash into has a cash flow that now offsets the difference between what the tenant pays in rent and the new mortgage payment after the cash out refinance is done. 

The answer to this question depends on the type of loan you are refinancing into and the amount of time that has passed since the BK or Foreclosure occurred. These timelines for a refinance are precisely the same as if you were first purchasing the home with either an FHA, VA, or Conventional Loan. We have listed all the bankruptcy and forclosure timelines on the respective loan pages, and you can easily access those pages by clicking the links below. Also, we are more than happy to discuss this with you over the phone or in person.

VA Loans

FHA Loans

Conv Loans