Arizona Mortgage Refinance
Arizona Wholesale Mortgage Inc. offers refinance loans in Phoenix and in every city and county throughout the great state of Arizona.
There are basically two types of mortgage refinance options.
1. A cash-out Arizona refinance (a.k.a. debt consolidation refi) is one option.
Many people refinance their mortgages with additional cash-out because mortgage rates are usually the lowest loan rates available to the consumer. With the possible exception of student loans, refinancing your mortgage is the best way to borrow money if you want the lowest possible interest rate.
2. Secondly, the more common refinance option is called a Rate and Term refinance.
This type of refinance is called rate & term because that is precisely what is affected with this type of refinance. Your loan balance does not change or is changed very little. We will write about the two types of refinances in more detail below.
We realize that this is a long article. It can be confusing at times and almost always boring! If you would rather speak to a human being instead of reading about your refinance options, just call us at (602) 358-8717 or fill out the form located at the bottom of this page.
Of course, like most anything, there are advantages and disadvantages to a cashout refinance.
One disadvantage is that they usually have higher interest rates compared to a standard rate and term refinance.
On the other hand, even with the higher rate penalty for cashout this is still almost always the best way to borrow money since the interest rate is cheaper. It will likely be impossible to find a lower interest rate when cash is needed. In addition:
The interest on a first mortgage refinance is always tax-deductible. If you take out a second mortgage, unless you use it for home improvements, you cannot use the interest as a tax deduction. So, for example, if your refinance is for the purpose of paying off credit card debts, you will get a tax deduction on the interest that you would not get with any other type of loan.
A refinance on your first mortgage will be slightly more expensive then taking out a line of credit. However, those additional costs can be rolled into your new refinance, so it is not as though you need to dip into your savings.
Secondly, when refinancing in Arizona, you have 3 days to cancel. You have three days to look over the paperwork and be sure that you made the right decision to refinance. Even after you sign all of the paperwork at the title company, you still have the right to cancel for thee days, until midnight on the third day.
The Rate and Term refinance is the type of refinance in which you simply lower your interest rate. For example you currently have a 7% interest rate and you refinance it to 6%- it’s that simple.
You can have a rate and term finance with zero costs. However, the question that we get asked the most is, “Do you have no-cost refinances?” Yes, we do. However, when you refinance your mortgage, genuine, legitimate fees are generated. For example, the title company which has nothing to do with the bank needs to get paid. The appraiser needs to get paid. So how can a lender offer a no-cost refinance?
“Zero-cost” refinances are really a misnomer, because there is a cost. You will always get a higher interest rate on a zero cost refinance. Sometimes this is ideal if you plan on fixing up your home and selling it in a year. Secondly, you don’t want to invest a couple of thousand dollars into closing costs to get a lower rate, because you won’t be in the home long enough to recoup your closing costs.
How much you pay for closing costs is entirely up to you. As mentioned above, you can have a zero-cost refinance which is great for short-timers. If you plan on staying in the house for at least five years, you will be much better off paying closing costs and getting the lowest possible rate. You pay more up front, but in the end, you save so much more on your monthly payment that you will usually break even in several years. We will help you figure out your “break even” point for every single loan. You tell us how long you plan on staying in your home and we will recommend the most logical refinance options.
Typically, most lenders will tell you that it takes between 30 and 60 days to close any type of mortgage loan in the current market. However, we can close escrow an Arizona refinance in as little as three to three in a half weeks. Timeliness is usually helped or hindered a great deal by the loan applicant.
However, we will break it down so you can understand exactly why some loan refinances close in three weeks and others take two months.
How long it takes to refinance your particular mortgage loan can vary depending upon several factors.
The most important thing to consider is our client’s own unique situation.
How is your credit score?
If it’s outstanding, your refinance will close much more quickly then if you have poor credit or no credit at all. If you don’t have any credit, for example, it will be up to your mortgage loan officer to help you gather alternative forms of credit.
An example of alternative credit could be a letter from your landlord stating that you have paid your rent on time for the past year, a utility bill, auto insurance payments, etc.
Do you keep good records?
We will always need documentation for a mortgage loan. Sometimes, the documentation is extremely minimal. VA or FHA streamline refinances are one example. Then, sometimes we need a lot more documentation if you are self-employed.
If you do not save all of your check stubs or bank statements, it will be up to you to contact your bank and your employer to obtain the necessary paperwork. If you do not keep your tax returns, you will need to contact the IRS to get a copy of those. If you do not have check stubs and it takes your human resources department one week to send us copies of your old stubs, that means it will take one extra week to close your refinance loan (or purchase loan for that matter).
The bottom line: If you have great credit and you own a filing cabinet, we can refinance your Arizona mortgage within 30 days.
If you have questionable items on your credit report and you do not keep any records, it will take a little longer. Again, depending on what we need to gather and the cooperation we receive from you.