Seattle Mortgage Planners

A Division of Pinnacle Capital Mortgage Corp.
1700 Westlake Ave N, Suite 300, Seattle, WA 98109

Jim Hoge, Licensed Loan Originator
MLO-116391

Refinance Frequently Asked Questions

How do I refinance my existing home loan? 

The primary reasons people refinance their existing mortgage include lowering their rate, pulling cash out for a remodel, or to consolidate debt and lower overall payments. Seattle Mortgage Planners has a variety of fixed rate and adjustable rate options to choose from. If you are focused on fixed rate programs, the two primary programs are 30 year and 15 year fixed rate.

30-Year Fixed-Rate Refinance
Choose this when:

  • You want low monthly payments that do not change
  • You want a loan that’s generally easier to qualify for
  • You’re planning to remain in your house less than 10 years
  • You want the maximum tax advantage (please consult your tax adviser)

15-Year Fixed-Rate Refinance
Choose this if:

  • You want a shorter loan life and lower rates
  • Low monthly payments are not a priority
  • You’re planning to stay in your house for more than 10 years – especially if you’re planning to completely pay off your loan

CASH OUT OPTION
If the equity in your property qualifies, you can refinance with a loan amount greater than your current mortgage – and keep the difference! Use it for home improvement, debt consolidation, or whatever you want.
back to top
Contact us for a free consultation

How do I calculate the value of my property? 

Want a good place to start? Go to the website zillow.com and type in your address. While this is by no-means an accurate final estimate, it does offer a starting point. An appraiser may value the property significantly higher or lower depending on condition, recent comps, upgrades, etc. Since a mortgage is a loan secured by a piece of real property, a crucial factor is in the correct value of the property in question.

Property value can be determined in a number of ways:

  • The market value of the property – that is, what a buyer will pay for it and what other comparable properties (comps) in the neighborhood have recently sold for.
  • The appraised value of the property – that is, what a trained and licensed professional deems the property to be worth based on an inspection, comps, and a thorough analysis of the property and its neighborhood.

Additionally, the appraiser estimates the replacement value of the property – that is, the cost to build a house of similar size and construction on a vacant lot. The appraiser reduces this cost by an age factor to take into account deterioration and depreciation.
back to top
Contact us for a free consultation

Can I make extra principal payments so I can pay off the loan more quickly? 

Depending on the loan, and what your state permits, it is possible for you to make extra payments on the loan. Extra payments will have an effect on the amortization schedule over the remaining term of your loan. If you want to pay off your loan in a certain amount of years, discuss this with us and we’ll estimate for you how much extra principle payment you’ll need to send in each month. It’s important to note however, this is a choice and is not required. You should consult a financial planner to determine if paying extra principle each month is the highest and best use of your money.
back to top
Contact us for a free consultation

What is a cash-out option? 

If the equity in your property qualifies, you can refinance with a loan amount greater than your current mortgage – and keep the difference! Use it for home improvement, debt consolidation, or whatever you choose.
back to top
Contact us for a free consultation

How do I know what my loan rate will be? 

Rates vary primarily based on the type and purpose of the loan, your credit history and income, loan amount, value of the property, and the number of points you are willing to pay. Once the rate is chosen and ‘locked’, we’ll guarantee the rate up to and including your expected close date.
back to top
Contact us for a free consultation

What are points and how many do I have to pay? 

One point is equal to 1% of your loan amount. It is important to remember that discount points are linked to the interest rate for the loan and therefore are a choice, not required. Generally speaking, the lower the interest rate, the higher the points paid. Sometimes it makes sense to pay the extra points and ‘buy’ the rate lower, sometimes it does not. This decision is yours to make, but we will review it with you in-depth and explain your options, the break-even, etc. to determine what final rate and point combination works best for your particular circumstances. You can choose a ‘no-point’ option, or can pay points to get a lower rate. Finally, if you choose to pay points and have a lower rate, they are paid when the loan closes, not at the time of application.
back to top
Contact us for a free consultation