NJ Refinance Rates

NJ Refinance Rates

Generally, a borrower who has made timely payments for the last 12 months serves as a guide and demonstrates their willingness to repay future credit obligations.

Conventional loans guidelines have tighten in the last few years. To refinance with a conventional loan you must have a 620 Credit Score and the maximum loan-to-value is 95%. Interest rates for rate and term refinance will depend on your credit score and your loan-to-value. Usually the higher the loan-to-value and the lower credit score the higher the rate.

New FHA Policy changes require minimum FICO score to be 580 for 96.50% loan-to-value and anyone refinancing with a score lower than 580 will require 90% loan-to-value. These FICO requirements have gone into effect in the spring 2010. However, individual lenders will still require credit scores higher than 640.

A perfect credit score is not needed for an FHA loan approval. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a for a conventional loan. Sometimes scores down to 500 are accepted if there are compensating factors that offset the credit risk

Rate and Term Refinance

Refinance mortgage rates allow a Loan-to-Value of up to 105%.

This means that if you owe the exact amount that your house is worth you can still refinance. The 105% allows you to finance the closing cost.

You need to know what your property is worth. You can get a good guesstimate by going to www.zillow.com or by contacting a local appraiser for a value estimate based on comparable sales in your area.

Cash Out Refinance

Cash out refinance allows homeowners to refinance their existing mortgage by taking out another mortgage for more than they currently owe, therefore repaying their current mortgage and using the equity they have built up in their home to take out another larger mortgage.

FHA allows cash out amount up to 85% of the value of the property.

Conventional loans allow cash out amount up to 80% of the value of the property.

Interest rates for cash out refinance will depend on your credit score and your loan-to-value. Usually the higher the loan-to-value the higher the rate and that's for Conventional loans and FHA loans. If you have a low credit score

Refinance Loan

What documentation will I need?

• W2's for the past 2 years
• Current pay stubs for the past month
• Bank statements for last 2 months for each active account with sufficient reserves (all pages)
• Latest retirement statement for each active account (all pages)
• Residence addresses for past 2 years (if you reside at your current address for less than 2 years)
• Recent mortgage statement (s)
• Homeowners declaration page
• Clear copy of Driver’s License
• Clear copy of SS card
• Addresses and loan information of other real estate owned (if any)
• Personal tax returns for the past 2 years, current income statement & balance sheet for business (self-employed only)