Mortgage Refinance Questions Answered

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Your property must be located in Virginia or Colorado

Many customers ask what is the mortgage payment on a particular loan amount. Any of our LO's can quickly calculate that for you. The 30yr mortgage payment on a $100,000 loan at 2.5% is $395.12. You can extrapolate from that figure or you can go to our refinance calculator and enter exact figures.

It's different in each state based on the taxes in the state. There are what we call hard costs (lender fees, flood cert, title company fees, appraisal report, credit, etc) and there are soft costs which include money collected at closing to cover your real estate and homeowners insurance escrow. Typically soft costs are returned to you from your previous lender if you are refinancing. Email one of our mortgage professionals and get exact costs.

 1 point origination is equal to 1% of the loan amount. 1st Nations believes these are a frivolous charge and we never charge them.

Borrowers can pick their rate. Rates can be lower than market in which case you pay extra cost for the low rate at closing or they can be higher and you receive funds back for the higher rate.  Sometimes you can use Discount Points to create a no cost loan.  Any of our mortgage professionals can structure a loan to get you this. 

Interest on a fixed rate mortgage is front loaded, so you pay more interest in the beginning years than in the later years.  To get started on this calculation go to our calculator. 

Go to our friendly rate calculator, enter your info and you'll have some choices.

This is easily determined by working with your mortgage professional, but a general rule is take the difference between your old payment and your new refinanced rate payment and compare how many months it will take to cover the refinance costs. If you are staying in the home longer than the amount of months it takes to recoup the cost, then it's worth it!

This mostly depends on whether you need an appraisal and what the title company in your area is charging. Your 1st Nations Mortgage Loan Officer can usually make an appraisal requirement go away and very early on calculate your hard closing costs. 

The customer is allowed to refinance their loan whenever they want, but your mortgage professional at 1st Nations Mortgage worked hard to get you the low rate loan and most lender contracts require us to wait 6 months before refinancing.

The beauty of using 1st Nations Mortgage is that we can pick and choose the best lender in the country at any given time for your loan.  We chose lenders for our customers based on rate, service, and getting a particular loan done.  

This is easily determined by working with your mortgage professional, but a general rule is take the difference between your old payment and your new refinanced rate payment and compare how many months it will take to cover the refinance costs. If you are staying in the home longer than the amount of months it takes to recoup the cost, then it's worth it!

Yes, most of the time your mortgage professional will find a lender that will provide you a better rate and payment than you have now. 

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The customer is allowed to refinance their loan whenever they want, but your mortgage professional at 1st Nations Mortgage worked hard to get you the low rate loan and most lender contracts require us to wait 6 months before refinancing.

Many times when a borrower wishes to add a home addition, pay for college or other cash needs, they refinance their home to get cash back at closing.  ie. if you have an $800K home with a $300K loan, you may want to refinance at $400k to get $100K cash back at closing.

Always get a Loan Estimate from your mortgage loan officer.  The loan estimate will tell you what your costs are going to be and the lender can not raise costs provided to you by the loan estimate.

Just have your loan officer generate a new principle and interest payment and compare it to your present payment.  Remember to subtract out your escrow prior to comparing.  One of our mortgage professionals would be happy to help you.

First of all, banks seldom offer you the best rate and terms for a refinance. So if you are presently with a bank, check out what a mortgage broker can get for you.  Mortgage brokers have access to the best rates in the country, while banks do not. 

What does a Loan Originator do?

Many borrowers think that loan officers don't do much during the loan process, but there are many items that have to be completed by your loan officer to get your loan to closing.  Here are items you loan officer must get done: 
Make calculations and determine best situation for borrower
Borrower to answer loan app questions via 1st Nation’s Blink app
OR Take full Loan Application 
Obtain Driver Lic, Borrower Auth and Safe Harbor authorization
Get Loan App into proper form/LOS/Fannie 3.2 format
Pull Credit Report
Send out for signature 1003, Borr Auth, state specific disclosures
Match Credit Report to Loan liabilities
Match Loans to Real Estate owned
Obtain all Closing Agent costs for Loan Estimate
Order appraisal with Customer Credit Card 
Export Loan out into Fannie 3.2 format
Research Lender Program/Pricing, then Choose Lender
Upload Fannie 3.2 format to lender of choice
Obtain Fannie/Freddie Approval
Work on getting Appraisal waived by Fannie/Freddie
Obtain initial customer docs that Fannie/Freddie demand
Upload signed initial documents
Email initial signed loan docs
Get customer to sign and agree to Intent to Proceed
Obtain initial underwriting approval
Obtain UW specified documents
Upload 2nd round of UW documents
Obtain title company documents to include: Prelim CD, Deed, CPL,Wiring Instr
Obtain Mortgagee Clause and get it applied to Mortgage and Hazard Insurance
Monitor loan rates-try to lock at best rates
Initiate loan lock procedures
Forward Loan Lock Forms to customer, then Retrieve signed forms
Ask customer for date/time closing
Inform Closing Agent of date/time of closing
Inform Closing Agent to forward initial HUD to Lender
Research and provide to Home Owners Insurance Co the mortgagee clause of the lender
Obtain HOI paid invoice or just an invoice to be collected at closing & Declarations page with mortgagee clause
If customer wire notify customer to call closing agent to ensure routing/acct number is not fraud
Ensure Lender can call employer to obtain a verbal verif of employment 

More Mortgage Refinance Answers

This is easily determined by working with your Mortgage Professional, but a general rule is take the difference between your old payment and your new refinanced rate payment and compare how many months it will take to cover the refinance costs. If you are staying in the home longer than the amount of months it takes to recoup the cost, then it's worth it!

There are 2 types or reasons for refinances: Rate and Term or Cash Out.  A rate and term is to lower your payment and a cash out is to get some cash back at closing.  

Just about all mortgages in America can be refinanced, because a new lender completely pays off your old lender and prepayment penalties in the US are mostly illegal.

Typically the answer is yes.  Lenders take your income, no matter if it comes from social security, or a retirement account to ensure you can repay the refinance.

Yes, your loan officer can structure your loan in such a way that you will not have any closing costs.  There are 2 ways to achieve this.  Either the rate will be slightly higher or the loan amount will be raised to cover the costs.  Contact us for which is best. 

This is easily determined by working with your mortgage professional, but a general rule is take the difference between your old payment and your new refinanced rate payment and compare how many months it will take to cover the refinance costs. If you are staying in the home longer than the amount of months it takes to recoup the cost, then it's worth it!

Bad credit is in the eyes of the lender.  Many borrowers think they have bad credit, but 1st Nations Mortgage can still get them a better deal.  If you know your credit, you can try our mortgage rate calculator where it will ask you for your credit score.  If you don't know it, then just contact a mortgage professional to help you out.

The answer to this is probably no, unless you have enough alternative income or maybe 1 1/2 times the loan amount in liquid assets.  

Use a mortgage broker.  Brokers can turn to a plethora of US wholesale lenders to get you the rate and terms that are best for your situation.  

You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. You closing costs are not tax deductible if they are fees for services, like title insurance and appraisals.

You’ll need to show you have at least 10–20% equity in your home.

Lenders need proof that you’ve maintained and paid your original mortgage for at least 12 months before they’ll consider your loan for refinancing.  Sometimes lenders will accept 1 late payment. 

There are 2 choices to this:  Contact a mortgage professional or go fill out an application.  Either way, you'll be on your way to the easiest, lowest cost method possible.

1st Nations Mortgage typically closes refinances in around 20-40 days depending upon the lender chosen and their backlog.  Sometimes you have to wait longer for the best rate. 

There are NO points to refinance a mortgage with 1st Nations Mortgage, but if you want lower rates, then you might have to pay a percentage of discount points for that lower rate.  Your Loan Officer can provide you with all your options. 

Borrowers that are going to stay in their home for more than a year are good prospects to refinance.  Of course the new rate should be better than the old rate unless divorce or other unforeseen circumstances come into play. 

Well we presently operate in Virginia and Colorado where hard closing fees, not taking taxes and homeowners insurance into account, range from $2257 to $4280.  This depends on the fees charged by the lender, the title company and whether an appraisal is required.  None of these closing fees come to 1st Nations Mortgage corp.  They are all 3rd party fees. In all cases, the lenders pay us the same flat percentage of the loan amount. 

Unlimited!  Do it as much as you want. You should wait 6 months between each though. 

Go find out on our mortgage calculator.

Compare our rate to theirs. Go find out on our mortgage calculator or contact one of our mortgage professionals.

This is easily determined by working with your Loan Officer, but a general rule is take the difference between your old payment and your new refinanced rate payment and compare how many months it will take to cover the refinance costs. If you are staying in the home longer than the amount of months it takes to recoup the cost, then it's worth it!

Mortgages are orchestrated events with a plethora of third parties involved. Fees are third party fees paid to get your loan refinanced with the new lender. They include the new lender underwriting fee, a tax service fee, a flood certification, an appraiser fee, credit report fee, title company fee, closing agent fee and state real estate fees including taxes and recording fees.  We partner with great companies to keep your fees low. 

You can go to our 30yr calculator or tell one of our mortgage professionals what you need. 

You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. You closing costs are not tax deductible if they are fees for services, like title insurance and appraisals.

In a divorce situation, a home can typically be refinanced after there is a court ordered separation agreement specifying who gets what.

This is easily determined by working with your Mortgage Professional, but a general rule is take the difference between your old payment and your new refinanced rate payment and compare how many months it will take to cover the refinance costs. If you are staying in the home longer than the amount of months it takes to recoup the cost, then it's worth it!

Who's to say?  Rates go up and down by the hour.  Work with your mortgage professional to see if it's worth refinancing, then decide and don't look back.  If rates get better, you can always refinance again, but many times rates get worse the borrower did not act. 

Who's to say? Rates go up and down by the hour. Work with your mortgage professional to see if it's worth refinancing, then decide and don't look back. If rates get better, you can always refinance again, but many times rates get worse the borrower did not act.

A good rule of thumb is: Fannie Mae's maximum total DTI ratio is 36% of the borrower's stable monthly income before taxes. The maximum can be exceeded up to 45% if the borrower has a good credit score. 

Go to our rate calculator to find out what a rate for a 30 yr loan would be or contact one of our mortgage professionals for other rate terms.

FREQUENTLY ASKED MORTGAGE QUESTIONS

How much is my new mortgage? Do I get to skip payments for a month? Questions, questions, questions.  We have all the answers for you from our great group of loan officers.

Refinances can come in two different varieties. Rate & Term or Cash Out refi's.  The Cash Out refi's can be for debt consolidation, home remodel, college tuition or any other needs the borrower desires. Cash Out refi's cost slightly more than rate and term. 

It is ok to refinance multiple times.  You may want to do a no cost refinance. To achieve this, sometimes it's best to take a slightly higher rate and have your closing costs rolled into the rate.  Your LO can show you how to do this. 

Before you find a home, you'll want to get prequalified by us for a mortgage.  You'll receive a letter from us telling you how much house you can afford.  Your Realtor will use the letter to help get the seller to agree to your offer.

We've heard all kinds of "rules to follow" on these answers, but the bottom line is if you are going to be in your home long enough for your new lower payment savings to pay for any costs of a new refi, then it's time to refi.

There is no exact figure on this question until all the questions are answered: credit score, loan to value, your debt to income, where is the home located, what type of loan do you want?  So just call us or chat with us, and we'll get you a fast answer. 

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