Whether your goal is to reduce your monthly mortgage payment, cash out some of your equity, or shorten the term of your mortgage loan, we’ll take care of your needs.
The interest rate is the percentage of the loan amount charged to borrow money. Interest rates are based on market conditions, your credit score, the amount of down payment, and the type of mortgage.
One point equals 1% of your mortgage loan amount. You may be able to pay one or more points to lower your interest rate. A lower interest rate means lower monthly mortgage payments. You may be able to finance points as part of your mortgage amount. Points are usually tax deductible.
This includes all charges (other than discount points) that the loan originators (lenders and brokers) will receive for originating the loan. This charge covers items including fees, document preparation, underwriting costs and other expenses. You may be able to finance the origination charge as part of your mortgage amount.
This is the amount of time you have to pay off your mortgage balance. Shorter loan terms typically mean higher monthly mortgage payments, but typically have lower interest rates. If you pay off your mortgage balance within a shorter term, you will typically pay less in total interest than with a longer-term mortgage.
The total cost of a mortgage includes the interest rate, discount points, and origination charges. This total cost is known as the annual percentage rate (APR), which is typically higher than the interest rate. The APR enables you to compare mortgages of the same dollar amount by taking into account the total annual cost of the mortgage.
If you’re not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the Home Affordable Refinance Program (HARP).
Set up by the Federal Housing Finance Agency in March 2009 to help underwater and near-underwater homeowners refinance their mortgages.
You may be eligible for HARP if you meet all of the following criteria:
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