Is your current mortgage interest rate too high? Do you want to reduce your monthly payments? Do you have major home improvements to finance or do you just want to pay of your loan sooner? Do you have debt you want to consolidate? If you answered yes to any of these questions, refinancing your mortgage is a way to potentially lower your interest rate and monthly mortgage payment, change to a fixed-rate refinanced loan with a shorter duration, or use a portion of the equity available in your home to finance major expenses. Please navigate to the below information to learn more about refinancing your mortgage with us here at American Interbanc Mortgage.
Life’s circumstances change. Market forces change. There are many great reasons for refinancing a mortgage – listed below are a few of the most common reasons:
- Lower Your Monthly Payment:
Perhaps you’re expecting a new baby, or are going to take a new job that pays a little bit less. If you want more cash in your pocket each month, you can refinance into a lower rate or longer loan term (e.g. from a 15 year fixed-rate mortgage into a 30 year fixed-rate mortgage). Either change can result in a significantly lower mortgage payment!
- Reduce Your Loan Term:
Are you getting closer to retirement and don’t want the burden of mortgage payments on a fixed income? Are you earning more income now than when you obtained your 30 year mortgage? Refinancing into a shorter loan term (e.g. from a 30 year fixed-rate mortgage into a 10 or 15 year fixed-rate mortgage) will allow you to pay off your home sooner and significantly lower the amount of interest that you pay over the life of the loan. In some cases, you may also be able to significantly reduce your interest rate simultaneously, so there is little change to your monthly payment. A true “win/win” situation!
- “Cash-out” Some of Your Home’s Equity:
Do you want to expand your house to finally include that home office you have always wanted? Refinancing your mortgage to access your home’s equity is referred to as a “cash-out” refinance. A cash-out refinance requires you to increase your loan balance but you will be able to allocate the proceeds of your cash-out to other useful purposes. Some common reasons for a cash-out refinance are:
- Consolidate credit card debt or pay off a Home Equity Line of Credit.
- Fund a home improvement project.
- Pay for a nonrecurring expenses, like buying a car, a wedding or financing an education—purchases that might otherwise require the customer to borrow funds at a higher, non-tax-deductible interest rate.
Please call us today to discuss whether or not refinancing makes sense for your situation. Call our toll-free refinancing hotline at (800) 724-0004.
We’ve designed our refinance process at American Interbanc Mortgage to be quick, easy and transparent. With a focus on responsible lending, quick turn times and quick approvals, our goal is to make the refinancing process as easy as possible. Our experienced Loan Officers will work closely with you to ensure that we provide you the right loan product for your current and future needs. Whether it is a rate and term, cash-out or any other type of refinance, American Interbanc Mortgage is your one-stop shop for your refinancing needs.
The following outlines the quick and easy steps that you need to take in order to refinance with American Interbanc Mortgage:
Q: How do I start the application process for an American Interbanc Mortgage refinance loan?
A: You may get stated with your mortgage application in a number of ways:
Q: What type of refinancing programs does American Interbanc Mortgage offer?
A: American Interbanc Mortgage offers two types of full documentation refinancing: Rate/Term Refinance and Cash-Out Refinance.
A Rate/Term Refinance is the simplest type of mortgage because the customer is simply changing the interest rate and term of the loan, and perhaps the loan program, but not the loan amount. It may also be known as a “no cash out refinance” for this reason. This refinancing program allows the customer to pay off the customer’s existing mortgage and include the new closing costs in the new mortgage amount. The customer may use this type of refinance program to reduce the customer’s interest rate, loan term or both. Although there will be closing costs associated with the new refinanced mortgage, the lower interest rate should eventually offset these costs and benefit the customer in the long run. This is known as the “break-even point of the refinance” – essentially when the closing costs are offset by lower monthly mortgage payments, so subsequent payments save the homeowner money each month.
A Cash-Out Refinance allows the customer to turn the equity he/she has built in the property into cash which can be used for a variety of purposes. Once the refinance is complete, the new loan will consist of the original balance prior to the refinance plus the desired cash-out amount. Both the size of the customer’s mortgage and the mortgage payment may increase, depending on the difference between the customer’s old interest rate and the new refinance rate. For example, on a $500,000 home, in which the original loan has an outstanding balance of $300,000, a cash-out refinance could allow the homeowner to take a new mortgage for $400,000, pay off the $300,000 outstanding balance on the original mortgage, and use the remaining $100,000 to finance an home expansion, pay for an emergency, or for any other reason the homeowner wants.
Q: If I refinance, where will the closing be conducted?
A: Closing on the customer’s new loan will be conducted at the office of the Escrow Company or attorney assigned to the customer’s closing. As an added convenience, American Interbanc Mortgage can also arrange for a closing agent (mobile notary) to come to the customer’s home in order to sign the necessary papers.
Q: How long will the refinance process take?
A: Usually loans will be closed within 30 days from the date of completed application and after all required loan documents have been submitted. Remember, we are fast and thorough here at American Interbanc Mortgage, but we can only move quickly when the customer provides all documentation we need.
Below is a short list of the documentation required to begin the processing of the customer’s loan. Documents sent to us can be copies unless otherwise stated.
- Pay Stubs covering the customer’s most recent two pay periods for each applicant.
- W-2 Forms for the previous two years.
- Two most recent years’ federal tax returns (e.g. for a loan in 2015, the customer need to submit the customer’s 2014 and 2013 federal tax returns). All the pages and all schedules please. State tax returns are not required.
- If the customer is self-employed, the two most recent years’ business tax returns are also needed.
- For self–employed or investment income, the two most recent years’ 1099’s and K-1 forms are also needed
- For self–employed business income,year-to-date profit and loss statement and balance sheet.
- For retired customers, copy of Social Security and/or Pension “award letters” detailing the amount of retirement income.
- Two most recent years’ federal tax returns (e.g. for a loan in 2015, the customer needs to submit the customer’s 2014 and 2013 federal tax returns). All the pages and all schedules please. State tax returns are not required.
- Homeowner’s Insurance statement(s) for all properties owned showing the customer’s coverage and the annual premium.
- Mortgage statements for all properties owned that have liens.
- Copy of driver’s license or State I.D.card for all customers.
- If divorced, the customer’s fully executed divorce decree.
Note: Additional documentation may be required depending on the specific details of the customer’s loan application.
Please use our DropBox document upload feature to submit your file(s) to American Interbanc (files excepted: .doc, .docx, .gif, .jpg, .jpeg, .pdf, .png, .psd, .tif and .tiff). Please upload one (1) file at a time. For questions, please contact us at 800-724-0004.
Rate Lock Policy
At a certain point in the processing of your loan, you will be eligible to request your rate lock. The rate lock secures the market rate then in effect for the lock period that you choose. Rate locks are available in 15, 30, 45 or 60 calendar day periods. The most commonly chosen rate lock period for refinances is 30 calendar days. For purchases, you will have to take into consideration the time period between the lock date and the closing date.
Rate Lock Hours:
Lock requests will be accepted from the time we post rates on our website until 4:00 PM PST/PDT Monday through Friday, excluding holidays. No locks will be accepted on holidays. Please use email communications during non-working hours. You must be eligible to request a lock per our written policy stated here in our website.
Rate Lock Requirements:
- A representative from American Interbanc Mortgage must have provided confirmation that we are in receipt of a complete loan application sent from our secure website.
- We must have received a rate lock agreement form signed by the borrower.
- We must have received all of the initial required documents itemized in the Required Documents section of our website./li>
- Unlike most companies, we do not require that you be approved in order to lock in an interest rate with the exception of a 15 day rate lock.
- On a purchase transaction, we do require that you show proof that you have a home under contract before you are eligible for a rate lock.
- 15 day rate locks (offered on selected loan programs) require full loan approval and a clearance and satisfaction of all outstanding loan conditions.
- For 15 day rate locks, borrowers need to be aware that they bear the risk that the market will deteriorate between the time they apply and the date they become eligible to lock.
Rate Lock “Float-Down” Policy:
American Interbanc Mortgage will consider requests by borrowers to “float-down” certain locked loans prior to the expiration of the lock or the funding of the loan, whichever is earlier, subject to the terms in this policy. The term “float-down” refers to a borrower’s desire to take advantage of improvements in the market and renegotiate better loan terms than those to which the borrower previously committed at the time they executed a rate lock agreement.
A float-down is available only on a one-time basis per loan and only for fully approved loans with all loan conditions satisfied. A float-down is for the same program and does not extend the existing rate commitment period. Float-downs are not available for adjustable rate mortgages, and American Interbanc Mortgage reserves the right to decline to agree to a float-down at its discretion.
• Any borrower desiring to negotiate a float-down on an eligible mortgage loan shall be subject to the following; an additional fee of $500.00 or .5% point (based on loan amount,) whichever is greater. A borrower with a 30-day lock may only float-down to current 30-day pricing, and a borrower with a 15-day lock may only float-down to current 15-day pricing. A float-down shall not extend the original expiration date of the initial lock period. All extension costs associated with a float-down shall be paid by the borrower. Float-downs are not available in New Jersey.
Rate Lock Extension/Relocks:
A borrower may request a rate lock extension for a period up to a maximum of 30 days. Rate lock extensions are issued in 7 calendar day increments and are added to the end of the current rate lock period. Each 7 day increment can be extended at additional minimum cost of .125% of the loan amount. A maximum of 2 extensions for a combined total of 30 days of extensions (in any combination of 7 day increments) are available for a loan.
A borrower may cancel a rate lock at any time; however, the borrower can only relock at the worst case pricing of the current market or the original rate lock plus an additional fee of .50% of the loan amount. Alternatively, the borrower may wait 30 days from the last expiration date of a lock and relock at the current market price then in effect.
Losing Your Rate Lock/Failure to Comply:
American Interbanc Mortgage reserves the right to cancel or modify the duration of a rate lock for the following reasons:
- If at any time the borrower has not provided any documents we have requested within 48 hours of our request.
- If at any time the borrower has delayed the process by failing to comply with appointments.
- If the borrower fails to timely return initial signed disclosure documents, including the Intent to Proceed
Confirmation of Your Rate Lock:
Lock requests are executed immediately upon receipt. The borrower should consider the lock confirmed only upon receipt of a letter signed by an authorized representative of American Interbanc Mortgage.
Volatile Market Conditions
American Interbanc Mortgage reserves the right to suspend lock requests on any business day that market conditions prohibit our ability to execute a lock.
Talk to a Loan Specialist Today
We want you to feel confident about purchasing or refinancing your home. Our experienced loan specialists are here to answer any questions or to address any concerns you may have. Get in touch today to lock in your custom rate or to begin the application process.