When is a good time to consider refinancing?
There is no set rule for when to refinance. Many factors contribute to the decision and are dependent on your financial situation. A lower rate will reduce your monthly mortgage payment. Some people have a goal of paying off their mortgage in a shorter time. NOLA Lending Group will guide you through the process and help you make the best decision.
Why choose NOLA Lending Group?
Financing your home is about more than finding an attractive rate. We are committed to providing our clients with the absolute best home buying experience possible, while providing competitive rates. We provide in-house processing and underwriting which means your loan is always in our hands through your loan closing. We do not service loans. We may assign, sell or transfer the servicing of your mortgage loan. We even close your loan with our own funds. Our Mission is to provide superior quality lending practices with uncompromising integrity to all of our customers. We want to be your “lender for life”!
What documentation will be required at the time of loan application?
Supporting documentation will consist of your two most recent pay stubs, tax returns for the past two years, W-2 and/or 1099 forms for the past two years, two months of bank statements, Social Security number of all borrowers and copy of your driver’s license. Additional information such as a Social Security award letter may be required depending on how you are compensated.
What is the difference between a fixed-rate and an adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate that stays the same throughout the life of the loan. With a fixed-rate mortgage you have the security of always knowing exactly what the principal and interest portion of your monthly loan payment will be. The interest on adjustable-rate mortgages can fluctuate up or down. This offers you an opportunity to potentially save on interest costs. The safest adjustable-rate mortgages have annual lifetime rate caps, which limits how high your interest rate may go.
What is a rate lock?
A rate lock protects you from financial market fluctuations. You can choose to lock or not lock your rate. If you lock your interest rate and there are no changes to your loan, your interest rate generally remains the same. If there are changes to your loan, your final interest rate may change.
How do I know when to lock my rate or let it float?
No one can make this decision for you. If you are comfortable with the monthly payment and the other terms of the loan, it makes sense to formalize it in writing. If rates fall after you lock, try to remember that your goal was to secure an affordable loan to purchase the property and you’ve done that.
When can I lock my rate?
You can lock your rate at application, while your loan is being processed and approved, or any time just prior to closing.
Do I need homeowner’s insurance at closing?
Proof of homeowner’s insurance will be required for closing. You will need to present an insurance binder and pay for one year of coverage.
What is the difference between private mortgage insurance and homeowner’s insurance?
Homeowners insurance covers damages to your home, your belongings and accidents as outlined in the policy.
Mortgage insurance protects the mortgage lender if a customer is unable to make payments and defaults on the loan. If you make a down payment of 20% or greater, private mortgage insurance is not required.
What is private mortgage insurance (PMI)?
PMI is required for conventional loans with a down payment of less than 20 percent of the value of the home. You can avoid paying PMI by making a down payment of 20 percent or more.
When can I cancel PMI?
PMI will automatically end when the loan-to-value ratio reaches 78 percent and your loan payments are up to date. Borrowers can request cancellation of PMI when the loan reaches an 80 percent loan-to-value ratio, assuming the loan is current.
Does my home have to be paid off to get a home equity loan or line of credit?
Home equity is the difference between what you owe on your mortgage (and any other outstanding liens) and your home’s current market value. Ask your loan specialist for details on our home equity loans and lines of credit.
How much can I borrow?
The amount is determined, in part, by taking your home’s appraised, fair-market-value, and subtracting the balances of any outstanding mortgages and liens on the property.
