Mortgage Refinance

Click to apply online with Principle Home Mortgage

ABOUT

Refinancing a mortgage can sound intimidating, but the team at Principle Home Mortgage from Williamsport, PA and the Lycoming County region, can help you determine which type of refinance is best for your needs.  When you refinance a mortgage, it is the process in which the original mortgage loan is paid in full, and the new mortgage loan assumes the old loan’s position.  The reason for refinancing can vary upon the borrower’s situation, but often it is to reduce monthly payments through obtaining a new mortgage with a lower interest rate or dropping mortgage insurance if your loan-to-value is appropriate.  Another popular reason to refinance is to consolidate debt and home renovation.  Most mortgage loan programs can be used to refinance your current loan program.

PRODUCT HIGHLIGHTS

• Agency: All loan programs are eligible with certain limitations so the agency will vary
• Max Loan-to-Value: Up to 97% depending on loan program; Higher for renovation programs
• Max Loan Amount: Several factors including location and income can influence this amount
• Mortgage Insurance Premium: Varies by loan program
• Upfront Mortgage Insurance Premium: As little as 0% but up to required amount based on the agency requirement.
• Max Income: No restrictions unless it’s a USDA program
• DTI Requirement: Varies on many factors and should be thoroughly discussed with your mortgage broker. (see link below for more information on automated underwriting)
• Credit Requirement: Varies by lending bank and can be lower with an automated underwriting approval.
• Down Payment Requirement: No applicable in a refinance

PRODUCT BENEFITS

• Many loan programs available: Each borrower is different, and each refinance is different.  No matter the type of loan program you have currently, you can refinance into a different loan program if you qualify.  A 203K renovation mortgage is popular when there is limited supply in the current home market.  A conventional mortgage is advantageous to drop mortgage insurance if your loan-to-value has reached required levels to remove the insurance.  Speaking with a mortgage broker to help determine the best product for you is very important.
• Many reasons to refinance:  There are numerous reasons to seek a refinance of your current mortgage including debt consolidation, funds for renovation, aging in place, removing mortgage insurance, lowering interest rates, shortening the loan term, or simply to remove someone from the mortgage and deed. 
• Low credit score requirements:  With all the various loan programs available to borrowers, even if your credit score is lower than you’d like it to be, there’s most likely a mortgage program available to you.  Discussing your scenario with a mortgage professional like a mortgage broker will help you determine the best course of action.
• Low closing costs: Your mortgage broker can help set up your refinance to be as inexpensive as possible, or even receive money out at closing with a cash-out type of refinance loan.

HOW DO I APPLY?

Depending on the type of refinance you are seeking the right documentation will vary.  Generally you will need 2 forms of ID and 30 days of paystubs.  Other documents may include 2 years tax returns & W2s, and 2 months bank statements.  If you are self-employed, these requirements will vary slightly.  To learn exactly what’s required for your refinance in the Williamsport, PA and Lycoming County region, reach out to Principle Home Mortgage at (814) 308-0959 to discuss your home financing needs.

RESOURCES

Apply online with Principle Home Mortgage

Visit the FHA homepage for more information on FHA Home Loans

Learn more about The Federal Reserve and mortgages

Visit the VA homepage for more information on VA Home Loans

Find out if your Williamsport home’s location qualifies for USDA mortgages

Learn more about automated system approvals