CALL US AT 877.210.8542 
ONLINE REFINANCING RESOURCES
Home Loan Refinancing Frequently Asked Questions
Find clear answers to common questions regarding refinancing your home loan. Learn to lower your monthly mortgage payments, reduce your loan cost, get cash out refinancing and save thousands of dollars today.- Can I really save tens of thousands of dollars, lower my monthly mortgage payment up to $300 or better and get cash back for personal use when refinancing my home?
- Rates are low. Is now a good time to refinance?
- When should I refinance my current mortgage loan?
- Should I refinance if I plan on moving soon?
- What are Points?
- Should I try to pay as many discount points as possible to lower my loan's interest rate?
- What does it mean to lock the interest rate on a mortgage loan?
- Should I "lock in" my loan rate when I apply for a mortgage loan?
- I've had credit problems in the past. How does this impact my chances of getting a home loan?
- I've only been late a couple of times on my credit card bills. Does this mean I will have to pay an extremely high interest rate?
- Should I choose the lender with the lowest interest rate and cost?
Q. Can I really save tens of thousands of dollars, lower my monthly mortgage payment up to $300 or better and get cash back for personal use when refinancing my home?
A. Yes. Individual homeowners have been saving s much as $100,000 or more refinancing their homes over the past three years. Although mortgage rates are climbing, rates are still at a attractive level and ideal for cutting loan cost. There are many home refinancing solutions to fit your individual financial needs.
Q. Rates are low. Is now a good time to refinance?
A. When interest rates fall, a homeowner should definitely call Platinum Capital Group about refinancing, but he or she should discuss their entire financial situation and goals before making any final decisions. Is your goal to lower your monthly payment, Consolidate debt, Get cash out for a large purchase or Change your interest deduction expense for your taxes? Ask your Platinum Capital Group refinance consultant to provide a couple of refinancing scenarios for you, showing how your loan term length, monthly payment and your total interest expense on the loan will change. After looking at these scenarios, it will be clear whether or not you should spend the money to refinance.
Q. When should I refinance my current mortgage loan?
A. It is often said that you should refinance when mortgage rates are 1% lower than the rate you currently have on your loan. Refinancing may be a viable option even if the interest rate difference is slightly less than 1%. For example, the monthly payment (not including taxes & insurance) would be about $1153 on a $150,000 loan at 8.5%. If the rate were lowered to 7.5% the monthly payment would be about $1048, a savings of $105. The significance of such savings in any scenario will depend on your income, budget, loan amount and the change in interest rate. Your trusted lender can help calculate the different scenarios.
Q. Should I refinance if I plan on moving soon?
A. Most lenders will charge fees to refinance a loan. If you plan to stay in the property for less than a couple of years, your monthly savings may not get a chance to recoup your closing costs. Let's say a lender charged $1,500 to refinance your loan, but it resulted in a monthly savings of $75. It would take 20 months (1,500 divided by 75) to recoup the initial costs before you start to realize some savings. Some lenders will charge a slightly higher than average interest rate on refinance loans, but waive all costs associated with the loan. The attractiveness of these loans will depend on the interest rate you are being charged on your current loan.
Q. What are Points?
A. Points are costs that need to be paid to a lender in order to receive mortgage financing under specified terms. A point is a percentage of the loan amount. One point on a $150,000 loan would be $1,500. Discount points are fees that are used to lower the rate on a mortgage loan.
Q. Should I try to pay as many discount points as possible to lower my loan's interest rate?
A. If you plan on staying in the property for at least a few years, paying discount points to lower the loan's interest rate can be a good way to lower your required monthly loan payment (and possibly increase the loan amount that you can afford to borrow). If you only plan to stay in the property a year or two, your monthly savings may not be enough to recoup the cost of the discount points that you paid up front. Ask your Platinum Capital Group refinance consultant how long it would take for your monthly savings to recoup the costs of the discount points.
Q. What does it mean to lock the interest rate on a mortgage loan?
A. Due to the nature of interest rate movements, mortgage rates can change dramatically from the day to day. If interest rates rise sharply during the application process, it could make a borrower's mortgage payment larger than he or she previously thought. To protect against this uncertainty, a lender can allow the borrower to "lock in" the loan's interest rate, guaranteeing the borrower the prevailing loan rate for a specified period of time, 30 to 60 days is typical. A lender may or may not charge a fee for this service.
Q. Should I "lock in" my loan rate when I apply for a mortgage loan?
A. No one knows for sure how interest rates will move at any given time, but your Platinum Capital Group Refinance Consultant may be able to give you an estimate of where he or she thinks mortgage rates are heading. If interest rates are expected to be volatile in the near future, you may want to consider "locking in" your interest rate.
Q. I've had credit problems in the past. How does this impact my chances of getting a home loan?
A. Obtaining a home loan is possible even with extremely poor credit. If you have had credit problems in the past, a lender will consider you to be a risky borrower to lend to. To compensate for this added risk, the lender will charge you a higher interest rate and usually expect you to have a lower loan to value. The worse your credit is, the more you can expect to pay for an interest rate and the lower your loan to value will need to be.
Q. I've only been late a couple of times on my credit card bills. Does this mean I will have to pay an extremely high interest rate?
A. Not necessarily, if you have been late less than three times in the past year, and the payments were no more than 30 days late, you probably have a pretty good chance at getting a home loan at a competitive interest rate. Lenders guidelines will vary, but most lenders will excuse a couple of minor "late pays" as long as the borrower can provide a reasonable excuse explaining them (i.e. job transition, illness). If the late pays were 60+ days late and cannot explained, you may have to settle for a higher interest rate.
Q. Should I choose the lender with the lowest interest rate and cost?
A. There are primarily two things to consider when choosing one lender over another: the quality of service being provided and the cost of services provided. When comparing lenders, ask each lender several questions before you fill out any loan application. A good lender should be able to get you through the financing process leaving you confident that you made a sound financial decision. If after a few questions you do not feel comfortable with the lender, simple call someone else.