Capital Home Mortgage Midland

Midland Mortgage Refinance

What is the Purpose of your Midland Mortgage Refinance

Midland Rate-and-Term Refinance

In the process of repaying your Midland mortgage loan, there may come a time when you wish you could modify the terms. You may need more time to repay the loan or want to take advantage of the lower interest rates. 

At Capital Home Mortgage, we can make these changes happen for you through a rate-and-term refinance. But what exactly is a refinance, and how does it work? Let’s break it down.

Rate And Term Refinance: The Basics

A rate and term refinance is a type of refinancing that allows you to replace the existing loan terms with new ones that better suit your needs. When you refinance, you take out a new loan, pay off your current mortgage, and then start making payments on your new loan. With a rate and term refinance, you may switch to a longer or shorter loan term, a lower interest rate, or a different monthly payment.

When determining whether to grant you credit and under what conditions, potential lenders consult your credit report, which contains your financial information and debt repayment transactions, including:

  • Identification details
  • Credit application details such as credit card applications and mobile phone payment plans
  • Current credit cards, debts, and loans
  • Credit repayment history
  • Defaults, bankruptcies, debt agreements, and credit infringements
  • Missed utility and phone payments (more than 60 days overdue)

Check your credit report to ensure it’s correct and up to date. Only apply to refinance your home loan once you have verified that the information is accurate and complete.

How much does mortgage refinancing cost?

Here’s an overview of the potential costs of refinancing  your mortgage:

  • Loan origination fee – 0.5% to 1.5% of the loan amount
  • Appraisal fee – $300 to $500
  • Title insurance fee – more or less $1,000 depending on where you live and the loan amount
  • Credit report fee –  $30 to $50, but may be paid by the lender
  • Prepaid interest charges – the amount of your first month’s interest
  • Recording fee – cost varies by county
  • Mortgage points – one point is equal to 1% of the mortgage loan amount (more points means lower interest rates)

Pros and Cons of a Rate-and-Term Refinance

Refinancing can be one of the best financial decisions, but you should analyze the decision from all sides. You need to carefully weigh the pros against the cons of refinancing to ensure it’s the best choice for you. 

Rate-and-term refinancing offers the following advantages:

  • Access lower interest rate – 

Securing a lower interest rate than you are currently paying will save you thousands of dollars throughout your mortgage.

  • Lower monthly payments – 

Lower interest rates should result in lower monthly payments (unless you opt for a shorter repayment period). Your payments will decrease even more if you refinance for a longer term. 

  • Get out of debt sooner – 

A shorter mortgage term will allow you to pay off your mortgage faster but expect higher monthly payments.

  • Eliminate PMI – 

Once you have 22% equity in your home, the law requires the lender to drop private mortgage insurance. If your house has increased in value since you bought it, refinancing will show you have more equity than you initially thought, and you’ll be able to stop paying PMI.

However, the following drawbacks might change your mind or hurt your chances of getting approved:

  • Eligibility  

Refinancing often requires a good credit score, a low debt-to-income ratio, and substantial equity, making it inaccessible to some borrowers.

  • Closing Costs 

You’ll have to pay closing costs when refinancing, like when you got your first mortgage. 

  • Appraisal

You must go through the appraisal process once more with a rate-and-term refinance, which will take time and money. Moreover, your refinance application may be rejected, or you may pay a higher rate if the appraisal finds that your home has decreased in value.

Is Rate-and-Term Refinancing a Good Idea?

You might be looking at spending thousands of dollars once you add up all the fees and costs related to refinancing your mortgage. So how can you tell if refinancing your mortgage is worthwhile?

Although the exact answer will depend on your particular circumstances, it comes down to what you hope to gain from refinancing. If refinancing results in significant savings or more affordable monthly payments, it could be worth it.

Analyze your circumstances and financial situation to determine whether refinancing makes sense. It all boils down to finding an approach that suits your needs. 

If refinancing is the best option, contact Capital Home Mortgage at (432) 218-4828 to get started. We’re ready when you are.

Why Midland is Choosing Capital Home Mortgage...

Close On Time with True Approval

Control of the Loan from the Application to Funding.

Great Midland Rates

Direct Mortgage Lender Providing Competitive Rates and Low Fees.

Midland Customer Service

7  Day a Week Support from Application to Final Mortgage Payment. 

Midland Mortgage Rates

Capital Home Mortgage Midland is dedicated to offering Great Midland Mortgage Rates.

Call now to speak with a Loan Officer or request a no obligation custom rate quote.

Have you ever wondered why interests rates are what they are and what determines the final rate?  Why borrowers receive different interest rates? Or why rates go up and down?  Interest Rates are calculated using several factors.

  • Demand for the mortgage Securities
  • Property securing the mortgage
  • occupancy of the property
  • Loan to value of the property
  • Borrower’s credit worthiness

Midland FHA Home Refinance Loan

FHA offers a streamline refinances that simply reduces the interest rate and lowers the payment or shortens the term of the loan.  This rate and term option can be fully documented loans, or can be reduced documentation. The other FHA option is a cash-out refinance allowing homeowners the ability to access the equity in the property. (Not Allowed in Texas)

FHA Standard Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 80% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

FHA Streamline Refinance

  • FHA to FHA
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates

Midland VA Home Refinance Loan

VA Home Mortgages offers two types of refinances. The first is an Interest Rate Reduction Loan known as an IRRRL, which is a VA loan to VA loan.  The second is full documentation as rate and term or cash-out. The IRRRL is the most popular refinance as it requires no income verification, no appraisal, requires that the mortgage payments have been paid on time for the past 7 months and that there is a tangible benefit for the veteran.  Second is a full documentation loan requiring income verification and an appraisal.  This can be either a rate and term conversion from another type of mortgage program or a cash-out of equity. (Texas Excluded)

VA Home Refinance

    • Appraisal Required
    • Closing Costs Can Be Rolled In
    • 90% Max Loan for Rate and Term
    • Cash-out Option Available
    • Primary Residence Only

VA Streamline Refinance

  • VA to VA
  • No Appraisal Needed
  • No Income Documentation Needed
  • Reduced Funding Fee – Financed
  • Primary and Investment Properties

Midland USDA Home Refinance Loan

USDA Home Mortgages offer only USDA to USDA refinancing. All USDA program guidelines still apply including the geographical and income restrictions.

  • Rural Properties Only
  • Primary Residence Only
  • New Manufactured Homes Allowed
  • Closing Costs & Repairs Can Be Rolled In

Midland Conventional Home Refinance

Conventional Home Mortgages offers refinancing with higher loan limits and offers more options but require full documentation for income assets and usually an appraisal unless a property inspection wavier is granted.
    • Primary, Secondary & Investment Properties
    • Single Family, Duplex, Tri and 4-Plex
    • Rate and Term
    • Cash-Out Equity
    • Loan to Value Restrictions Apply
    • County Loan Limits Apply

Midland Jumbo Home Refinance Loan

Jumbo Home Mortgage refinancing requires the same higher credit standards and equity that purchase transactions require. 

  • Up to 3 Million Loan Amounts
  • Up to 90% Loan to Value (Credit Restrictions Apply)
  • Base Loan Amounts Varies by State and County
  • Subject to Investor Requirements

Midland Reverse Mortgage Refinance Loan

Covert a Traditional Mortgage into an Equity Line… Stop Monthly Mortgage Payments.

  • Primary Residence Only
  • Simple Qualifying – Equity Based
  • Credit Scores Not Applicable
  • Minimum Age 62

Midland Native American Refinance Loan

Native American Home Loans have 3 types of refinances available, Full Documentation, Streamline and Rehabilitation. 

Native American Renovation Refinance

  • Appraisal Required
  • 97.75% Max Loan to Value
  • Closing Costs Can Be Rolled In
  • 85% Max Loan to for Cash-out
  • Cash-out Option Available
  • County Loan Limits Apply

Native American Standard Refinance

  • HUD 184 to HUD 184
  • No Income Qualification
  • No Appraisal Required
  • Closing Costs Cannot Be Rolled In
  • No Lates on Mortgage in Last Year
  • Payment Must Drop on Fixed Rates
Not Sure? Take a Look at Other Midland Mortgage Programs

Midland Texas Mortgage Team

Conor Hayhurst

Manager
NMLS 743506

Damon Embler

Sr Loan Officer
NMLS 882260

chris erwin

Sr Loan Officer
NMLS 914064

Dale Gremillion

Manager
NMLS 210325

Midland Mortgage Company Reviews

© 2022 Sun West Mortgage Company, Inc. All Rights Reserved Please Click Here or refer to www.nmlsconsumeraccess.org to see where Sun West Mortgage Company, Inc. (NMLS ID 3277) is a licensed lender and servicer. We are not accepting applications from Georgia or Massachusetts residents or purchasing mortgages secured by Georgia properties at this time. Please Click Here to view Texas Complaint Notice and Servicing Disclosure. Our products and services have no affiliation with or endorsement from any government agency or body. Being High Risk Loans, Non-Conforming Jumbo & Non-QM loans may include higher interest rates, closing costs, Interest-Only periods or Pre-payment penalties. Although Sun West Mortgage Company is approved to conduct business in the state of New York, this website has not yet been approved by the State of New York Department of Financial Services. For properties located in the State of New York, this website can not be used to upload an application, please visit SWMC.com to upload an application.

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