Planning to Refinance Your Home?
Refinancing a home can be a confusing proposition for many homeowners. At ABLEnding, Inc. we aim to simplify the process and educate our customers on their financial options. When you refinance your home, you are taking out a new loan with new loan terms. You may be considering refinancing to lower your payments, shorten your loan term or amortization, fix your rate from an adjustable rate, or get cash out for purposes like debt consolidation, home improvements, or tuition.
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Despite the uncertainty that many feel about the refinancing process, refinancing is quite simple and generally only takes a few weeks. Documentation showing income, assets, and potentially other items are generally required. In most cases an appraisal of the home is also needed.
There are three major factors considered when deciding if you qualify to refinance: equity, income, and credit score. Equity is the difference between the appraised value of your home and the total dollar amount of the liens you have secured against your home. The more equity you have, the better! Income is used to determine your debt ratio, which is your total amount of outgoing monthly debt divided by your total gross monthly income. A lower debt ratio makes qualifying easier. Your credit score helps to determine your ability to repay the loan by considering your current and prior credit history of paying back your loans. A higher credit score suggests you will be able to repay your loans and helps you to qualify for a better interest rate.
If you are interested in refinancing your home, please contact ABLEnding, Inc. for a free consultation. We would be honored to help you consider your options and assist you in getting the best rates. Get a quote now!