Refinance FAQ

If you want to lower your payment, take cash out of your house for home improvements, refinancing can be a great option.  If you are looking for long-term security, you can also refinance an adjustable rate mortgage into a fixed rate loan.

It all depends on your current interest rate, the amount of equity you have in your home and your loan amount. To see how much money you can save by refinancing, take a look at our refinancing calculator or call us 562-448-1001.

Yes. There are options for people with second mortgages: (1) Second mortgage can be paid off through the refinance. Merit Capital can consolidate your loans into a new mortgage with one low monthly payment. Or (2) if you’d like to maintain the second mortgage, we can subordinate that loan and only refinance your first mortgage.

There are refinancing options available for borrowers whose property value is less than what they owe. Simply call a Merit Capital Mortgage representative and they can work on a solution for you.

We have several loan programs with NO Points and NO Fees. Standard loan fees include a credit report, appraisal, underwriting, processing, title, escrow, and recording fees. If you wish to pay discount points to lower your interest rate, each point will cost approximately 1% of the new loan amount.

We do have loan programs for people with less-than-perfect-credit. Everyone’s situation is different. Call Merit Capital Mortgage today to see if you qualify.

Equity is the appraised value of your home minus the amount you still owe on your loan.

The value of equity depends on your goal for refinancing. The more equity you have, the more money you may be able to get from a cash-out refinance. Or, more equity could result in a better interest rate, which may help you lower your monthly payment. Having enough equity may also help you eliminate private mortgage insurance (PMI), a costly monthly fee included in many mortgages with an original down payment of less than 20%. Talk to a Home Loan Expert to see if you have enough equity to reach your financial goals.

The following is a list of documents generally required during the refinance application process:

• 2 years most recent W2 forms
• 2 years most recent Income Tax Returns (ALL PAGES)
• 1 month most recent paycheck stub
• Most recent 2 months bank statements, checking/savings (ALL PAGES)
• If applicable, 401k, IRA, Annuity, etc. statement (ALL PAGES)
• Mortgage coupon/statement
• Homeowners insurance declarations page
• Most recent HOA bill/statement (if applicable)
• Legible Copy of Driver’s License
• Legible Copy of Social Security Card (for FHA loans)
• If self‐employed and incorporated, add 2 years most recent Corporate Income Tax Returns (ALL PAGES)

Some states have limits on how soon or how often their residents can refinance a home loan; these limits are often designed to ensure that the refinance process benefits the homeowner. Regulations aside, it’s very important to make sure that refinancing helps you meet your financial goals. Deciding if it makes sense to refinance your home depends on a number of factors: Does your current lender have a prepayment penalty? Do you have enough equity built up in your home? Are interest rates lower now than they were when you first got your home loan? Do you plan to stay in your home for many years?