Refinancing Your Home

When you decide to refinance your home, you’re basically paying off an existing mortgage by taking out a new loan. By doing this, you may get a lower interest rate, reduce your loan payment term or get cash at closing by borrowing against the equity in your home. For more information, locate a First Mortgage Corporation Branch or apply online.

Current First Mortgage Corporation customers could be eligible for a Streamline Refinance, the fastest and most convenient way to lower your mortgage payments. We offer three options:

Conventional Streamline Refinance
Streamline refinancing provides faster loan processing time for quick closing. Cash-out is not allowed on this type of transaction. You may qualify if:

·         You’re the original borrower(s) on the loan.

·         Your current mortgage is a:

o        fixed rate, 1-2 unit family principal residence or single family second home.

o        balloon/reset mortgage that’s a one-unit primary residence or single family second home.

o        converted Adjustable Rate Mortgage with supporting documentation to verify it.

·         The mortgage is at least 12 months old with zero past dues in the previous 12 months.

·         Borrowers' incomes have not declined.

·         The new monthly fixed installment is no more than 15% greater than the fixed installment at which you initially qualified for the mortgage that is being refinanced.

FHA Streamline Refinance
The FHA has created a rate reduction program called the Streamline Refinance. This provides a way for current FHA homeowners to lower their interest rate with little or no out-of-pocket costs. These loans can also be made faster and with less documentation than a typical loan.  All original applicants from the mortgage being refinanced must be applicants on the new loan.

·         Your original loan must already be an FHA insured loan.

·         The mortgage must have a satisfactory 12-month payment history and be current at time of closing.

·         Closing costs can be financed if you have enough equity to cover all the costs.  A new appraisal may be required when including closing costs.

·         Non-owner occupied transactions must pay all the closing costs out of pocket.  No appraisal is required.

·         Cash-out is not allowed on this type of transaction.

VA (IRRR) Interest Rate Reduction Refinance

·         Refinance a current VA loan at a lower interest rate.

·         Veteran who was the initial borrower on the loan

·         Veteran who assumed the existing mortgage and substituted his entitlement in the process.

·         Surviving spouse of a veteran who was a co-obligator on the existing VA loan and who currently occupies the subject property.

·         The mortgage has a satisfactory 12 month payment history.

·         The new loan amount may include:

o        payoff of existing balance, including interest

o        closing and pre-paid costs

o        funding fee

o        reasonable discount points

·         Cash-out is not allowed on this type of transaction.

Regular Refinance

You may be able to lower your interest rate, reduce the term of your loan and possibly include your closing costs in the new loan. Anyone is eligible to apply for our regular refinance programs to help meet their refinancing goals. We offer:

• Conventional refinances up to 97% loan to value (LTV)
• Government FHA refinances
• Government VA refinances

Cash-out Refinance

Cash-out Refinances allows borrowers to tap into their homes' equity to help meet any number of financial objectives, all at a competitive first mortgage rate.

• Conventional cash-out
• Government (VA) cash-out
• Discount points vary depending on loan-to-value, occupancy status and multiple units
• A new appraisal is required