Home equity may be used toward restructuring high-cost consumer debts. Eliminating credit card bills and other debts could provide some major relief for borrowers who aim to trim certain interest expenses. As a stable East Coast mortgage lender, Perennial Funding helps qualified borrowers obtain low-rate refinance loans and attractive purchase money loans, too.
Why Refinance a Mortgage Loan to Pay Off High-Interest Rate Debt?
By design, high-interest rate credit cards and other debts usually take longer to pay off than items that are financed with attractive rates. Higher monthly payments and the total amount needed to resolve high-interest rate debts are synonymous with expensive types of financing.
With a sufficient amount of home equity, an existing mortgage loan may be refinanced to include other debts. Refinancing often makes sense for a borrower who intends to live in her home for several years (to break even on the costs), seeks lower monthly payments, wants to send fewer payments to creditors or desires to receive cash from a portion of the existing equity within the home.
Who Provides the Best Mortgage Rates?
While consumers often debate whether the best mortgage interest rates are provided by lenders, brokers or credit unions, it would be extremely difficult for a single entity to consistently promote the lowest rates for home loans.
Given the competitiveness of the mortgage industry, a local home lender might be able to match or to beat the best mortgage interest rates that a consumer could find.
Our prices provide an attractive combination of rates and fees for a variety of loan programs. Typically, we are able to provide qualified borrowers with a 45-day rate lock. At any time, an applicant can request information about our current rates.
What is Needed for a Mortgage Loan Approval to Refinance?
Similar to buying a home, a variety of checks and balances are performed to ensure that refinancing is appropriate for a qualified borrower. A lending professional will determine if a new loan transaction is truly beneficial for a borrower who wants to use some of the equity in his home.
When reviewing an application to refinance, many of the items that are shown below may be requested prior to issuing a mortgage loan approval.
- Tax returns (last 2 years)
- Bank statements
- Credit report (including FICO scores)
- Appraisal (subject property)
- Homeowner insurance (copy)
- Title search
- Account statements (items being paid off)
How Long Does It Take to Secure Funding When Refinancing a Mortgage Loan?
The time frame for refinancing a home mortgage loan will vary among applicants. However, on a standard refinance transaction, we are able to secure funding for many of our clients within 30 to 45 days.
Certain loan programs such as an FHA streamline or a VA streamline will require less documentation, and the processing time to secure funding is much faster.
Contact Perennial Funding today to speak with one of our mortgage experts about applying for a loan to refinance or about specific steps to becoming a homeowner.