Question by Fast Pace: what is the best rate someone can have for a refinance mortgage?
having 668 on credit score and being first time home buying. Today, what docs do we need to present to refinace? Thanks, I appeciate your help.
Answer by Carolinahomerates.com
first time home buying??? refinance? that doesnt make sense.
rate depends on the loan to value….and if you’re looking for a 30yr fixed….what’s the loan amount..
you need to present paystubs, w-2’s, asset statements, etc
your rate shouldnt be higher than 6.375 for a 30yr fixed…with a loan amount over 150k……80% LTV…
Know better? Leave your own answer in the comments!
Well it depends….right now rates are up around 7%, you may be able to get something better at a bank….docs usually needed are paystubs, W2’s, Homeowners insurance declaration page, your first mortgage note or statement….and typically you go from there. But as far as rate, it is depending on pay history, new accounts opened recently, stuff like that. It also depends on your LTV, loan-to-value, usually the higher the LTV, higher the rate, for example, your house gets appraised for 200,000 but your balance is 197,000, you do a total refinance and it includes fees (which also eats your equity), your rate may be higher. If your house values at 200,000 and your balance is at 175,000, your rate would be much lower compared to a high LTV……
Basically, if you just bought your house within the last 12 months, and you bought it very close or at the valued price, it may not be a good idea to refi at this time….but if you have a lot of equity built up then go for it.
It will depend on the whole picture, not just your credit score.
The fact that this is your first home is not a consideration in refinancing the home.
Documents you will need are 2 mos paystubs, account statements for assets like savings or retirement accts, insurance info…..the processor on the loan would acquire the other items like verification of employment etc.
Rates are in the mid to upper 6’s depending on if you pay your closing costs or do a no closing cost option. The amount of equity plays a part in your loan qualifying.
You can find alot more help/info here….
There are many factors involved when determining interest rate. If you have an FHA loan and you streamline refinance, meaning you do not want cash out, you just want to lower your rate you will not even have to pay for an appriasal and fees are minimal. If you are doing a cash out refi
The typicall documentation is .
2 years tax returns
Year to date earning
Another consideration is how much equity and the loan to value you plan on borrowing. The more equity you pull out of your home the more risk for the lender.
Hi Claudia; if you are siously considering this, and would like to speak to a live mortagge propfessional, you can email me at email@example.com– you may be able to get a rate in the high 5s to low 6s, but I would really need more information to give you an accurate idea of what you would qualify for. Your question is a bit confusing as well, as you ask about refinancing and home purchase at the same time. Email me for more info and we can clear everything up and go from there.