Refinance

Refinancing a Home

Shorten the term of your mortgage. Reduce your monthly payments. Pull out the cash you need to finance your life. Choose your main objective and let us do the rest. Can’t decide? Often, we’re able to accomplish these in combination with each other for even greater savings!

The days of waiting a month or more to close loans are over. Borrowers and escrow officers love us (and you will too).

Benefits of Refinancing

  • Get Cash – Make home improvements, pay for school, or use it towards any of life’s expenses
  • Lower Your Payment – Pay less on your mortgage each month with a rate-and-term refinance
  • Consolidate Debt – Get rid of high-interest credit lines through your mortgage
  • Remove PMI – Your equity position may allow you to stop paying monthly mortgage insurance
  • Shorten Your Term – Own your home faster and potentially save thousands of dollars
  • Secure Your Rate – Trade in a risky, unpredictable ARM for the security of a fixed rate
  • Stop Paying Interest-Only – Make a dent in your principal balance with a fully-amortized loan
  • Make an Investment – Use your equity to pull out a down-payment for an investment property or vacation home

Cash-out programs for debt consolidation, home improvements or personal use.

Credit or income challenges? No problem. We've got you covered with programs designed just for you.

Financing up to 80% available. FICO scores as low as 620 acceptable.

Financing up to 85% available. FICO scores as low as 600 acceptable.
FHA Streamline: No appraisal**, no employment or income verification, reduced FICO credit score requirements. Max LTV 97.75%.

Financing up to 100% available with no monthly mortgage insurance. FICO scores as low as 600 acceptable.
VA IRRRL: No appraisal**, no income verification, limited documentation required. Max LTV 100%.

No appraisal*, lowered loan-to-value, income, asset, and FICO credit score requirements. Max LTV 150%.

*FICO credit scores as low as 600 acceptable. **In certain instances, an appraisal or income verification may be required.

Credit Criteria

Life happens. At 365 Home Lending, Inc., we get that. Your past doesn't have to dictate your future. You can still get financed even with derogatory marks on your credit history. Check out the waiting-time requirements below. If you still have questions, one of our dedicated Home Loan Experts will be happy to assist you, judgement-free.

Bankruptcy Ch. 7 & 11: Four years
Bankruptcy Ch. 13: Two years
Short sale: Four Years
Foreclosure: Seven years

Bankruptcy Ch. 7, 11 & 13: Two years
Short sale: Three years
Foreclosure: Three years

Dependent upon automated underwriting systems "DU" or "LP" when it comes to bankruptcies, short sales, and foreclosures. Speak with a licensed representative to help determine your eligibility.

The Refinance Process

Before you refinance your home, it’s important to know how refinancing works, what questions to ask, research what options are available, and determine whether or not refinancing will benefit you. At 365 Home Lending, Inc., we strive to keep you informed every step of the way.

To help you better understand the refinance process, we’ve listed some of the major milestones in the transaction below.

Step 1: Define your goals

One of the most important steps before deciding whether or not mortgage refinancing can benefit you is to determine what your objectives are. Is your goal to reduce your monthly payment or pull cash out of your equity for home improvements or debt consolidation? Are you looking to fix your adjustable rate? Once you determine your goals, you can take at look at the various home loan programs available to decide which loan option helps you achieve those goals. You can estimate monthly payments with our mortgage refinance calculator or visit our loan options to learn about all loan types that are available.

Step 2: Inquire online or call one of our Mortgage Bankers

Once you’ve defined your goals and researched all the loan options available, you can submit your information online or pick up the phone to speak with one of our mortgage experts. Your Mortgage Banker can answer any questions you have about how to refinance, the loan program you’re considering or can make a recommendation for you given your individual goals. We’ll make sure that you understand every detail of your loan program and answer any questions you have before moving forward. When you’re ready, you can apply online or call us at +1(949)683-0310 to speak with a Mortgage Specialist.

Step 3: Select your loan program

If you decide you’d like to move forward with the refinance, your Mortgage Banker will confirm your loan program, rate, and payment and will answer any questions you may have. At this point, you can lock in your interest rate to protect you against any fluctuations in the market. Once your rate is locked*, you will receive a lock agreement confirming the terms of your loan and your banker will collect a lock deposit fee to finalize the lock. The lock deposit will be credited towards your closing fees at the end of the transaction. For more information about the lock deposit, please view our What is a lock deposit video below.

Step 4: Submit your documents

After we receive the signed lock agreement and lock deposit, your banker will provide you a list of items to fax or e-mail so that we can verify all your information to get your loan approved and closed quickly. Click here for the refinance document checklist. We will also send you some preliminary disclosures such as the good faith estimate and truth-in-lending disclosure to review and sign which detail the terms of your rate and loan. In a few days, we will contact you to schedule the appraisal inspection. It is important to schedule the appraisal appointment as quickly as possible to prevent any delays in your closing.

Step 5: We’ll handle it from here

After we receive all your documents, your assigned Account Manager will contact you to go over the next steps, which includes opening escrow, ordering the preliminary title report, and coordinating with all the necessary parties to ensure your loan progresses smoothly and quickly. Once we have everything we need, your loan file will be submitted to the underwriter for review and formal approval.

Step 6: Close your loan

Upon approval, we will contact you to schedule a loan document signing appointment. This appointment will generally take 30 minutes to an hour and can be done at the convenience of your home or at an approved settlement location. After we receive the signed loan documents, we will close your loan approximately 3 days later. Then your monthly savings will begin or you’ll receive the cash for your home improvement project or to consolidate your debt!

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Frequently Asked Questions

Our home loan experts can arm you with helpful mortgage information plus other valuable resources to help make refinancing your home quick and easy!

Typically, any second mortgages are paid off through the refinance. We will consolidate both loans into one new first mortgage and you will only have one payment each month. If you'd prefer to keep your second mortgage intact, we may be able to ask your second mortgage lender to remain in second position and allow us to refinance the first loan. This process is called subordination and there is typically a fee charged by the second mortgage lender.

There are options that may allow you to refinance your loan even if the value of your home is less than what you owe. Call and speak with one of our mortgage bankers to see if you qualify for one of our programs.

Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These fees include 3rd party fees such as credit report, title, escrow, notary, and recording fees. Other fees include the appraisal fee and lender fees such as processing and underwriting. If you are paying points to lower the rate, the cost of each point that you pay equals 1% of your new loan amount. Aside from the closing fees, there will be prorated pre-paid costs for items such as property taxes, interest, and homeowners insurance (if applicable). If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.

Standard documentation collected for a refinance transaction includes information regarding your income such as pay stubs covering the most recent 30 days and W-2s for the last two years, asset information such as bank or mutual fund/stock statements covering the last 60 days and current loan information such as your most recent mortgage statement and homeowners insurance declarations page.

Depending on the reasons why your credit is imperfect, there are great loan options available including our government programs. Call and speak with one of our mortgage bankers to determine whether or not you qualify for one of our programs.

There is no rule-of-thumb when it comes to refinancing because there are different reasons to refinance. If you are currently in an adjustable rate looking to get into a long-term fixed loan, your rate and payment may actually increase, but you will be in a better long-term situation knowing your rate and payment will not change. If you are looking to consolidate debt, your loan amount and mortgage payments may go up but your overall monthly outflow will decrease because you will have eliminated some or all of your credit card bills and other monthly obligations. There are also no-cost and low-cost refinance options that can lower your rate and payment with no or minimal investment. It is a good idea to go over your specific situation with a mortgage expert to determine whether refinancing makes sense or not.

Most refinance transactions close within approximately 30 days from application to closing. loanDepot has built a smooth and seamless process, enhanced by our proprietary paperless technology that enables us to close loans faster than the average industry turn-times. As long as you do your part in delivering the documentation that we need in a timely manner, we should be able to close your loan within 30 days.

Depending on the state where your property is located, you can either sign in your home or at a designated settlement location such as an escrow office or attorney's office. In the presence of the signing authority, you will review and sign all your loan documents and then present a certified or cashier's check to pay the closing fees and other applicable closing funds unless you decided to finance the closing funds into your new loan. Once the loan documents are signed and delivered back to us, your loan will close in 3 to 5 days. If you are pulling cash out of the equity in your home, you will receive your funds 1 to 3 days after your loan closes.