Is mortgage refinancing right for me?
Program goal
The goal of refinancing your home loan is to help make your monthly mortgage payments more affordable by refinancing to a lower interest rate or from an adjustable-rate into a fixed rate loan.
Eligibility
You may be eligible for mortgage refinancing if:
you have at least 10% equity built up in your home
Estimate your equityen_estimate_equityThis calculator will help you estimate the current amount of equity you have in your home and help you determine if that percentage may qualify you for refinancing.
you are current on your home loan payments
If you do not have enough equity built in your home, but have been current on your home loan payments for at least the past 12 months, you may still qualify for mortgage refinancing through the Home Affordable Refinance Program.
Program at a glance
Step 1: Call and complete an application. We will send you a welcome package containing important information about refinancing your loan and the costs involved.
Step 2: We will begin to review your application. During this time we’ll order a home appraisal to determine your home’s market value and pull a credit report for all of the loan applicants.
Step 3: If your loan is approved, a settlement date will be scheduled for you, and any co-borrowers, to sign the final loan documents.
Get more details about the steps of mortgage refinancing.
How do I get started with refinancing?
Getting started with refinancing begins with a phone call. We will take your financial information over the phone and fill out an application with you.
Collect your financial information
Having a few important documents ready before you contact us will help us find the refinancing option that’s right for you. You’ll need to gather a set of documents for everyone listed on your home loan. These include:
your loan number
proof of monthly gross (pre-tax) income, i.e. paystubs
two years of income tax returns
two months of checking and savings account statements
account balances on all other debts (e.g.: student loans, car loans, etc)
Let us help you
Call us today at:
1.800.720.3758
8am-11pm EST Mon-Fri
or have a specialist contact you Opens a New Window..
Call Information Sheet » Opens a New Window.
To help you keep track of important deadlines and take notes during the call, please print out this form prior to calling.
Now that I’m in the process, what’s next?
If you’re already in the process of refinancing your loan, we can help you understand what you need to do next.
I have called and completed my application
Once you’ve called and completed your application, we will send you a welcome package containing a "Good Faith Estimate" that spells out the settlement costs associated with the loan, along with a Truth in Lending Disclosure Statement. On many loan products we also provide our Clarity Commitment®en_clarity_trademark—a simple, one-page summary that clearly shows key loan terms, is written in plain language and is designed to help you understand the loan you are applying for.
I have received my welcome package
After receiving your welcome package, you'll need to compare the proposed loan terms to your current loan. If the proposed new principal and interest payment is not an improvement over your existing loan terms, refinancing may not be right for you, unless you're refinancing to obtain a fixed rate to avoid any future monthly payment increases.
We will begin to review your application. During this time we may contact you for additional documentation. If we do, it’s important that you get back to us as quickly as possible to avoid any delays. We’ll also order a home appraisal to determine your home’s market value and pull a credit report for all of the loan applicants. We will review the property appraisal with your credit history and overall financial situation to make a decision whether to approve your loan request.
From the time of your initial phone call until you receive a decision from us it may take approximately 75 days. We will contact you regularly during this time to update you on your status. You can also check the status of your application online Opens a New Window. at any time. It is important that you continue to make your normal mortgage payments until you sign the loan documents and your refinance takes effect.
If you are experiencing a financial hardship and your current home loan payment is more than 31% of your gross (pre-tax) monthly income, you may qualify for more affordable payments under the Home Affordable Modification Program.
I have been approved for refinancing.
If your loan is approved, you will go through a closing process, just like when you first bought your home. At the closing, you and any co-borrowers will need to sign a full set of loan documents and pay for closing costs, unless all or some of them were financed into the loan amount.
If you did not qualify for refinancing, you may still be eligible for other home loan assistance solutions that could help make your monthly payments more affordable.
Now that you've got a new monthly payment amount, it's a good time to see how it fits in with your other financial obligations. You'll want to make sure that the payment amount is sustainable over the long run - and an updated budget is an effective way to do this.
A realistic budget lets you take a close look at exactly how much money you have coming in, and where it's going. You'll be able to see where you may be spending too much and identify specific areas where you may be able to cut back.
Home Loan Assistance Frequently Asked Questions
Refinancing may make your monthly mortgage payments more affordable by reducing your interest rate, extending your loan repayment period or a combination of both.en_refinance If you choose a fixed-rate mortgage, you will have a stable interest rate for the life of the loan.
Yes, there are costs associated with refinancing. These can include closing costs, points and application fees. We may let you roll these costs into the total mortgage amount to reduce the cash you must bring to closing.
Typically, you can finance up to 90% of the appraised value of your home, but the amount can vary depending upon your circumstances. The equity you have in your home is based on the value of the home and what you currently owe that’s secured by the property.
