Mortgage Rates for Refinancing for Stated Income Loans
Mortgage rates for refinancing are similar to those for first time buyers. Mortgage rates for refinancing are usually fixed rate mortgages or adjustable rate mortgages (or some variation there of). There are many sources on the Internet one can turn to for daily and weekly statistics for mortgage rates in order to calculate refinancing needs. Also, in order to check out mortgage rates for refinancing, many websites will offer free mortgage rate calculators.
Your FICO score will determine how much money your lender will give you and at what rates. Find out how to increase your credit score fast so that you can get the lowest interest rates.
When checking the mortgage rates for refinancing it is also important to take into account the fees of refinancing. These can include settlement costs, discount points and perhaps even a penalty for paying off your original loan early. The total expense for refinancing a mortgage depends on the interest rate, number of points, and other costs required to obtain a loan. To obtain the lowest rate offered, most mortgage companies will charge several points, and the total cost can run between three and six percent of the total amount you borrow. Some loan companies, however, may charge you zero points but at a higher interest rate. Comparing total costs and the bottom line of each refinancing plan will help you in making a sound decision.
Most people rely on credit when buying or refinancing a home. To qualify for a refinance mortgage loan with good terms, you’ll need to have an adequate credit score. A credit score is also known as FICO, a three-digit system created by Fair Isaac and Co. A FICO measures the probability of an individual paying back the money they have borrowed. Being aware of where your FICO stands and finding ways to improve it is saves you money. A 30-year loan for $200,000 can save you over $100,000 if you have a good credit score as opposed to a bad one. Most people think it’s preferable that the thousands of dollars goes into their pockets instead of that of their mortgage lender.
Some lenders will also offer a free credit report to potential customers as a method of persuasion to do business with them. The major credit reporting agencies are Experian, Equifax and TransUnion. By cleaning up your credit report first, including any errors on these reports, you’ll go a long way in lowering your mortgage rates for refinancing. The bottom line is that with a little planning and work, your bottom line can look thousands of dollars richer.
Stated income loans require little verification to receive money. Stated income loans generally require no pay stubs, W2’s or tax returns. For those who have difficulty verifying their earnings, stated income loans may just be the answer. Usually this group includes borrowers that make tips, bonuses and commission as their sole form of income or are simply self-employed or are retired and live off of their investments.
It may sound too good to be true, but it isn’t. There is a proven, yet renegade method to build your home for free. When considering a stated income loan as an alternative to traditional borrowing methods, one does have to have verifiable employment and some cash reserves or assets. Stated income loans are also known as No Income Verification Loans (NIV).
Several different types of stated income loans exist, depending upon the lender. Some stated income loans are available for those with FICO scores as low as 580 – 640. Usually the borrower’s statement or assertion of their income is enough to get the loan along with some assets. There are, however, some leaders that offer stated income and stated asset loans, which means that neither the income nor the assets are verified by the lender. These loans generally carry a slightly higher interest rate for the borrower since the lender accepts more risk with this method.
There may be some other caveats when applying for a stated income loan such as being with the same employer for 2 years, several credit accounts and no bankruptcies within the last 3 years. Also, the borrowers title must match closely to the stated income. As an example, a high-school janitor reporting $10,000 per month in earnings would be suspect.
Stated income loans can be used for new purchases, refinancing your current home and home equity lines of credit. Some lenders even offer stated income loans for commercial and non-residential real estate as well. Stated income loans may also be desirable for privacy-advocates who are willing to pay a little more in interest rates in order to keep their money matters private. No matter which kind of borrower you may be, stated income loans are at least worth considering if an alternative is what you need.