Arizona Mortgage Refinance
Arizona Wholesale Mortgage Inc. offers refinance loans in Phoenix and in every city and county throughout the great state of Arizona and Pennsylvannia.
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. The best way to borrower money if you want the lowest possible interest rate is to Refinance your mortgage.
2. Secondly, the more common option is called a Rate and Term refinance. This type of loan product is called rate & term because that is precisely what is affected with this type of transaction. Your loan balance does not change or is changed very little. We will write about the two types of refinances in more detail below.
Thirdly, 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 loan options, just call us at (602) 358-8717 or fill out the form located at the bottom of this page.
Advantages & Disadvantages:
Of course, like most anything, there are advantages and disadvantages to a cash-out loan product. 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 cash-out this is still almost always the best way to borrow money. Why? Because the interest rate is cheap. It will likely be impossible to find a lower interest rate when cash is needed. The interest rate on a first mortgage is always tax-deductible.
Whereas, if you take out a second mortgage, you cannot use the interest as a tax deduction. The only except is a home improvement loan. For example, if your refinance is for the purpose of paying off credit card debts, you will get a tax deduction on the interest. You would not get this 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, you can roll those additional costs into your new refinance. It is not as though you need to dip into your savings.
Next, 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. Even after you sign all of the paperwork at the title company, you still have the right to cancel for three days. You can cancel until midnight on the third day.
The Rate and Term Refinance
This is a 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%. 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 and 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, if 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 than this is ideal.
Paying For Closing Costs
How much you pay for closing costs is entirely up to you. As mentioned above, you can have a zero-cost mortgage 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 . We will recommend the most logical refinance options.
This is a difficult question to answer in a general sense.
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. However, we will break it down so you can understand exactly why some loan refinances close in three weeks and others take two months.