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| Jumbo Refinance Interest Rates |
| Loan Program |
Rate |
APR |
| 30 Yr. Fixed 1 pt. |
6.750% |
6.875% |
| 30 Yr. Fixed 0 pt. |
7.375% |
7.402% |
| 5/1 ARM 1 pt. |
6.250% |
5.886% |
| 5/1 ARM 0 pt. |
6.750% |
5.990% |
| 5/1 Int. Only 1 pt. |
6.375% |
5.858% |
| 5/1 Int. Only 0 pt. |
7.000% |
6.013% |
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Request a Custom Quote
for your Jumbo Refinance
Mortgage, complete with
Closing Costs and APR
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Simple 2 minute form
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Social Security Number is NOT
required
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No Credit Report is needed
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Receive accurate Interest Rate
and Closing Costs quote on a
Good Faith Estimate
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We guarantee the Rate and
Closing Costs we quote in
writing
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- Acceptable Purposes
- How Much You Can Borrow
- Cash in Hand Limits
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- Acceptable Purposes
- How Much You Can Borrow
- Incidental Cash Back
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If you have considerable amount of equity in your home, stable employment and sufficient income then you can always wait for even better Interest Rates to refinance or perhaps decide not refinance at all.
However, if you are even slightly worried about your employment and income outlook or property values in your area, I recommend REFINANCING NOW - better yet, yesterday! With property values flat and even dropping in many areas and Secondary Mortgage Markets experiencing liquidity crunch, you may not be able to refinance later at all. Worse yet, if you are in an industry that may experience a downturn in income due to current turmoil in housing market it may put refinancing out of your reach altogether since your income may not be enough to qualify for a refinance.
Many people think if they have large amount of equity in their home they can tap into it whenever they want since it is their equity, regardless of circumstances. The truth is that first and foremost condition Lenders are looking for is the Borrowers' ability to repay. If there is no source of income, borrowing becomes a lot more expensive and burdensome.
One of the advantages of choosing us for your Refinancing is that we offer a multitude of loan products to best fit your needs. Below is a partial listing of Mortgages we offer:
- 30, 20, and 15 year Fixed Rate
- 30 year Fixed Rate with initial 10 years Interest Only Payments to keep your expenses manageable
- 3/1, 5/1, 7/1, and 10/1 ARM's Fully Amortized or with Interest Only payments to keep your expenses manageable
- Stated Income/Asset, No Income Verification and No Ratio Mortgages (see Documentation Types page)
- Acceptable Purposes - Investors want to know what the Cash Out proceeds are going to be used for. While a "gambling" answer may not qualify you for the mortgage, home improvements, tuition, new car, debt consolidation and payoff, property acquisition, and many more reasons certainly will.
- How Much You Can Borrow - Since Loan Amounts are going to be different for each Borrower the amount that can be borrowed is best expressed in LTV, Loan to Value Ratio . LTV is calculated by dividing the Loan Amount by Property Value. Example: if you are borrowing $525,000 and property value is $700,000 then we divide $525,000 by $700,000 and multiply by one hundred percent. Here it is mathematically formulated:
- $525,000 ÷ $700,000 = 0.75
- 0.75 × 100% = 75% LTV
Our Investors allow up to 75% Loan to Value Ratio For Cash Out Refinances , sometimes even higher on a case by case basis.
- Cash-in-Hand Limits depend on Documentation Type, Loan to Value Ratio (LTV), and credit profile among some other factors. We work with many investors and they all have different guidelines. For LTV's of 50% or less the Cash-in-Hand amount is unlimited, while for an LTV of 75% it ranges from $300K to $500K.
- Acceptable Purposes - You may think that at least the Rate and Term Refinance is very self-explanatory but Investors make sure it makes sense and is in the best interest of the borrower. In other words, you shall benefit from that refinance either by amortizing the mortgage faster, saving in monthly payments, or converting from an ARM to Fixed Rate.
- How Much You Can Borrow - Since Loan Amounts are going to be different for each Borrower the amount that can be borrowed is best expressed in LTV, Loan to Value Ratio . LTV is calculated by dividing the Loan Amount by Property Value. Example: if you are borrowing $525,000 and property value is $700,000 then we divide $525,000 by $700,000 and multiply by one hundred percent. Here it is mathematically formulated:
- $525,000 ÷ $700,000 = 0.75
- 0.75 × 100% = 75%LTV
Our Investors allow up to 90% Loan to Value Ratio For Rate and Term Refinances , sometimes even higher on a case by case basis.
- Cash-in-Hand Limits - Even though you refinance for a Better Rate and Term as the name implies, you still may receive "incidental" cash back with at Closing. We work with many Investors and they all have different guidelines regarding the incidental Cash Back. Some allow as high as 2% of the Loan Amount while others limit to maximum of $200.
Debt Consolidation Mortgage works just like Cash Out Refinance with one distinction - In a Debt Consolidation Mortgage debts are paid off by the Escrow Agency rather than being paid off by the Borrower. The reason for this is the Qualifying Ratios. For higher Loan to Value or Debt to Income Ratio Loans some or all of the debts may have to be paid off by the Escrow Agency at the time of disbursement to qualify for the loan. Also, this way Lenders make sure that in a Debt Consolidation Mortgage debts are actually being paid off and the Borrower is not taking on more liabilities than he or she can deal with.
However, if the Borrower is well Qualified for the loan, then the monies will be given to the Borrower at closing to pay off the debts and in essence the transaction will be just a regular Cash Out Refinance.
In not so distant past your total housing payment, also known as PITI (Principal, Interest, Taxes, and Insurance) could not exceed 28% of your gross monthly income and all liabilities combined could not exceed 36%. But that's in the past.
Now the amount you can borrow is determined by Automated Underwriting Engines and total liabilities, including mortgage payment, can be as high as 45% of your gross monthly income. Among other factors the decision takes into account your Debt Management Experience first and foremost, then Credit Profile, Income, Assets, and Employment history.
We can Pre-Approve you via the Automated Underwriting in minutes, with no cost to you or obligation.
We'll start from Lender Fees - unless you are willing to pay a Point to buy down the interest rate our Total Lender Fees are $895. Everything else is Third Party Fees and your Escrow Account Reserves. Some of these Third Party Fees depend on the Appraised Value or the Loan Amount, and some are fixed amounts. Here is a breakdown of the fees on a Refinance Mortgage Transaction based on a $700,000 Appraised Value and $525,000 Loan Amount.
- Appraisal Fee to Appraiser (Third Party Fee) $450
- Credit Report to Repository (Third Party Fee) $23
- Underwriting, Processing, Tax Service, Wire and Flood Certification Fees to Lender (our fees) $895. We guarantee our fees in writing
- Escrow Fee to Title Agency (Third Party Fee) $150
- Title Insurance to Title Agency (Third Party Fee) $1288
- Title Endorsements Fees to Title Agency (Third Party Fee) $150
- Courier, Wire, Doc Prep Fees to Title Agency (Third Party Fee) $125
- Recording Fee to County Recorder's Office (Third Party Fee) $45
Closing costs can be paid one of two ways - you can bring money to closing or have the costs paid from refinance proceeds, even in a Rate and Term Refinance. The way this is done is by raising the Loan Amount just enough to cover the Closing Costs and Escrow Reserve requirements.
Escrow Account - Besides the Closing Costs,you will also be required to deposit reserves into a new Escrow Account. Having had a mortgage for a while I am sure you are familiar with your Escrow Account but here is a refresher of what it is - from this account the Lender will be paying Property Taxes and Homeowners Insurance Premiums to the County and your Insurance Agency.
The Reason Lenders want you to have an Escrow Account is simple - if a Borrower forgets to pay and renew the Homeowners Insurance Policy and God forbid something happens (Murphy's Law) to the home, the Lender is left holding the bag. In the same way, if a borrower does not pay Property Taxes, after a while the property will go to a Tax Sale and the Lender again will be left with nothing. They want to make sure these two items are always taken care of and what better way than to do it themselves.
When your existing mortgage is paid off, your current Lender will audit your account and return all excess monies accumulated in your current Escrow Account - usually within two to three weeks but never more than 30 days.
The Documentation needed is largely determined by Automated Underwriting Engines, however, here is a short list of items usually required. Some or most of these items will not be needed for Stated Income, No Ratio or No Income Verification Mortgages and this list assumes a Full Documentation Mortgage.
- Last two years W-2 forms. If you are Self-Employed or 1099 Employee then last two years of Tax Returns with all Schedules. If Retired or receiving Disability Income then Pension Award Letter or Social Security Award Letter and 1099G Form
- Last Paycheck showing Year to Date figures. Year to Date Profit and Loss Statement for Self-Employed.
- Last two Bank Statements
- Existing mortgage payment statement (coupon)
- Refinance purpose statement
That's about it for the paperwork. The rest is information that you'll need to have ready. Here is the information items needed.
- Employer's HR Department contact information
- Insurance Agent or Agency contact information for Homeowner's Insurance
This is it for Paperwork and Information needed. Again, in some cases you may not need these and in others may be asked to provide additional documents. It's all determined by Automated Underwriting and we can Pre-Approve you via the Automated Underwriting in minutes, with no cost to you or obligation..
Once you make the decision to proceed with the Refinance the rest of the process is as follows:
- We run Automated Underwriting to Pre-Approve you and determine what documentation will be needed - 1 hour
- Appraisal and Title Search are ordered and completed - 4 to 6 business days
- Loan Package is submitted for final Underwriting Review and Approval - 2 to 4 days
- Loan Doc's are ordered and prepared for signing - 1 to 2 days
- Loan Doc preparation and Closing Audit - 1 to 2 days
- Loan Doc's are signed
- 3 Day Rescission Period - all 1 to 4 Family, Owner Occupied property Refinance Mortgages have mandatory three day Rescission Period during which time you can contact the Escrow Agency where you signed the Loan Doc's and ask them to cancel the mortgage with no consequences. The Rescission Period is federally mandated and is for Consumers' protection. Can you see the benefit? If you are presented with a different term than what you were told you are getting you can cancel the transaction - even after you sign the Loan Docs!
- On the fourth day after signing the Mortgage Documents are Recorded and monies are disbursed.
The whole process takes 12 to 17 days to complete, including the Rescission Period. However, whenever Interest Rates drop significantly everyone rushes to refinance and the process may take a few additional days.
Have a question? Call us at 602-242-3045 or Contact Us online.
© 2004-2007 Accentra Mortgage, Inc. Content by Robert Tovmasyan
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