Uniquote offers you the lowest auto and home refinance rates on the industry. We offer you the best closing time for refinancing.
The best way to stop paying high interests for your mortgage
It’s quick and hassle-free.
Are you looking for Refinancing?
If you are, we’ve got you covered
We have answers.
What is refinancing?
Refinancing is taking a new mortgagee and paying off the old mortgage to save extra-paying interest. It is a way of saving the extra interest paid to the loan provider by taking a new loan with revised interest. You can pay off the old loan with refinancing and continue the agreement with revised changes.
Types of refinance loan
Refinancing gives you several options. You can choose the type of loan based on your needs.
Rate-and-term loan is issued when you want to pay off your original loan with relatively high-interest rates.
This type of refinancing is apt for you if you are looking to save your money from being paid for high interests. Your original loan is paid off by the new loan and you will be charged with low-interest rates.
Cash-Out Refinancing is replacing the existing home loan with a new mortgage. The new mortgage will be higher than the outstanding loan balance. You can withdraw the difference amount and use it for any other purposes.
With Cash-Out refinancing, you can decrease your monthly mortgage payments. You can also lower interest rates or change the loan term.
If you are looking to remodel your house or repay other high-interest debt, cash-out refinancing can be your best option.
Cash-In refinancing allows you to pay down the existing mortgage to get eligible for refinancing. The situation arises generally when the value of the underlying asset in the original mortgage is low.
The loan-to-value ratio is calculated by dividing the mortgage loan amount with the value of the property. The higher the ratio, the lower the rate of interest. The lower loan-to-value ratio leads to high-interest rates due to the high amount of risk involved in it for the loan provider.
If you have out your low-valued asset in the mortgage, you will be having to pay higher interest. If you want to take a new loan, you need to pay the original loan completely to get eligible for refinancing.
Why do you need refinancing?
If you are paying high-interest rates to the existing mortgage loan, refinance is the best option for you. You can take a new mortgage on an existing one and pay off the original loan. This will avoid paying high-interest rates by a significant percentage of the total amount.
When you need cash in hand for miscellaneous financial needs, refinance can become a viable option. You can take a new loan (more than an outstanding balance) to pay off the existing loan balance. The difference amount can be withdrawn for your financial needs.
When the interest rates fall, you will have an opportunity to take a refinance and shorten the loan term. You can keep the monthly payment amount the same which will significantly shorten the term.
Adjustable-rate mortgage plans may go up at times. You can switch them to a fixed-rate for your better financial stability.
When should you refinance your mortgage?
- When the interest rates fall by at least 1%, you can take refinance on your existing mortgage.
- When you need an emergency fund for your financial needs.
- When you want to reduce the loan term and own the property way before the stipulated period.
- When you want to change loan structure from Adjustable-Rate Mortgage to Fixed-Rate loan.
- When the original mortgage is paid for at least M months in its term. The Company provides you with a refinance if you have paid M months of the mortgage on it.
How to refinance your mortgage?
- Set your financial goal before planning for refinancing. Do not rush to refinance because your friends are taking it. Proper financial goals should be the motivation for your refinancing plans. Your motivation can be lowering interest rates, tapping on home equity or shorten the loan term, and so on.
- Explore the best mortgage refinance rate. We, at UniQuote, offer you the best way to refinance mortgage with the lowest affordable fee in the market.
- Compare our loan estimate document with other lenders and make your decision. We are transparent in keeping the details open for our customers. You can ask us about it anytime.
- Pick your loan term and choose your interest rate; adjustable-rate or fixed-rate.
- Close the loan process by paying the closing costs. Want to know our closing costs? Talk to us.
What documents are needed for refinancing?
To make the refinance process faster, The company needs proper loan documents to verify your information. The following is the list of documents that need to close the process quicker.
- Proof of income – To prove your income, you need to submit the following documents:
- Pay stubs – Pay stubs of all participants in the household.
- W2 statements for the last two years – Ask your employer for W2 statements. They provide them every year during tax season. You can find them in the tax returns copies. If you or your employer has paid your taxes electronically, you will have your e-copies in your records.
- Tax returns – Legit tax return copies from the last 2 years.
- Proof of assets – The list of the following documents to prove your ownership of current assets.
- Bank account statements related to these assets from the last 3 months.
- Details of stocks holding, bonds, and life insurance.
- Proof of debts – Details of the underlying debts on your name. Usually, debts include car loans, student loans, credit card loans, and current mortgages.
If you have any doubts about how to apply for refinancing, do not hesitate to contact us.
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