Emerald Mortgage Compay is a privately owned
Utah corporation and residential mortgage brokerage firm.
Delivering superior, personalized service on every loan.
603 E 4500 South, Suite 100 | PO BOX 57563 | Salt Lake City, Utah 84157 | Office: (801) 269-9600 | Fax: (801) 269-8137 | Email
About Emerald
Mortgage Company
Should you refinance your home loan?
SIMPLIFIED GUIDE TO REFINANCING
This is a summary of things to consider as you decide if you should refinance your home loan with a new conventional loan. If your present loan is an FHA (ARM or fixed rate) or VA loan, ask us about our special programs for NO-COST STREAMLINE refinancing.
- What are the benefits?
- What does it cost?
- What about tax and insurance reserves and prepaid interest?
- Can you skip a payment?
- What about rates?
- How much can you save?
- What about loan qualifications - jobs, income, credit, etc.?
- Why choose EMERALD MORTGAGE COMPANY for your refinance loan?
You may be able to reduce your interest rate, monthly payments, repayment term and/or get "CASH BACK" to payoff other debts, make home improvements, etc. Maybe you can combine a first and second mortgage into one loan, convert an adjustable rate mortgage (ARM) to a fixed rate loan or meet a balloon payment obligation. If you payoff an FHA loan, you can eliminate the extra mortgage insurance premium (MIP) included in your monthly payment and get a refund of part of the up-front premium (FHA-UFMIP) you paid when you took out the loan. If you have enough equity, you may be able to eliminate the additional monthly payment for private mortgage insurance (PMI) on a conventional loan. There are a lot of possibilities and many good reasons to refinance.
We will provide you with a reliable, detailed cost estimate when you complete your loan application. Standard closing costs for a loan of $100,000 are about $3,000 and can usually be included in your new loan so you do not have to pay those costs out-of-pocket. For loans over $100,000, closing costs generally range from 3.0% to 2.5% of the loan amount (higher loan amounts >>> lower closing cost percentage).
What about tax and insurance reserves and prepaid interest?
If your present house payment includes tax and insurance reserves, you will receive a refund of your escrow account after the old lender processes the payoff from your refinance loan, usually 2-4 weeks after closing. The prepaid interest amount you pay is based on the closing date of your refinance loan and how long until your first payment on the new loan is due.
Remember that each of your monthly mortgage payments includes interest earned in the prior month. The payoff amount for your present mortgages will be the unpaid principal balance plus interest to the date of payoff. A good way to estimate your payoff amount is to add one month's payment to your unpaid balance. On most conventional refinance loans, you can arrange to pay a regular payment at closing, or skip one or two monthly payments, depending on the closing date for the refinance loan.
It is impossible for anyone to accurately predict future home loan interest rates because rate movements are very fickle. Reductions are usually seen over a long period of time, but rate increases often occur quickly and without warning; much like how prices move for a gallon of gas for your car. EMERALD MORTGAGE COMPANY can provide you with a 30-45 day rate lock at the time you apply for your loan so you will know what rate you will pay for your refinance. In the past, borrowers who "caught the bottom" and got the best rate in a cycle did it more by dumb luck than special skill or insight from themselves or their loan officer.
Some lenders, eagerly advertising for your business, have come up with new meanings for the term "savings". You may "save" by reducing your monthly payments but end up paying more because of a longer payback period; or, you may reduce your loan term, make a higher monthly payment and enjoy genuine, old-fashioned "savings" by paying off your loan sooner. Either "savings" may make sense and be a good thing for you. How you "save" and how much you "save" simply depends on your situation and what you want to do.
What about loan qualifications - jobs, income, credit, etc.?
You must meet standard approval guidelines for debt to income ratios, credit history, equity (loan-to-value ratios), etc. We evaluate those criteria as soon as we receive your application and discuss any qualification concerns. If everything looks favorable, we proceed with the final approval process.
Why choose EMERALD MORTGAGE COMPANY for your refinance loan?
Refinancing your home is a big financial decision with long term consequences. There are many variables to consider, like how long you have owned your home and how long you expect to continue living there.
Our loan officers have the experience, expertise and genuine concern for your financial well-being to help you understand your options and decide if a refinance loan is right for your situation. If so, we approve and close your loan quickly and on the best possible rate and terms.
We are proud of the good reputation we have earned by providing superior service at competitive rates and terms. That is how we have done business since 1988 when EMERALD MORTGAGE COMPANY, an independent Utah corporation, was founded and it still works today. If you are considering a refinance, we would like a chance to discuss details of your situation and provide you with straight answers and reliable home loan options.
Emerald Mortgage Company is an Equal Opportunity Lender.
For more information on what this means visit the FDIC website.
© 2004, Emerald Mortgage Company
