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LET'S GO CONVENTIONAL!
If you have good credit, a steady income, and enough equity in your home, our Conventional Refinance loan programs offer great rates and faster closings in most cases. So if you fall into this category and are ready to move forward, let's get started today!Show Less
LET'S GO CONVENTIONAL!
If you have good credit, a steady income, and enough equity in your home, our Conventional Refinance loan programs offer great rates and faster closings in most cases. So if you fall into this category and are ready to move forward, let's get started today!
Should I do a Conventional mortgage refinance?
Conventional mortgages can have a fixed interest rate or an adjustable interest rate. Typical fixed-rate loans have a term of 30 or 15 years. However, Sun American Mortgage also offers 25-year, 20-year, and 10-year fixed-rate options.
Conventional mortgages require your home to have some equity to qualify for a refinance.
What are the requirements for Conventional Refi?
Unlike FHA or VA loans, conventional loans are not insured by the federal government, though borrowers are required to purchase private mortgage insurance if their home equity is less than 20 percent of the value. Conventional mortgage qualification is relatively straightforward if you have a decent credit score, financial stability and the required equity in your home.
You must currently have a conventional loan in order to refinance into a new conventional.
We guide you through every step along the way!
To qualify for a conventional mortgage, you will need to provide up-to-date, accurate documents that prove your financial stability. These include bank statements from the past two months, recent pay stubs, W-2 forms and tax returns from the previous 2 years. If you are self-employed, you should also gather business tax return information for the past two years.
Debt-To-Income Ratios (What is This?)
An important aspect to qualifying for a mortgage is your “total debt to income ratio”….what is that? To calculate your debt to income ratio, add up all monthly debts, such as car loans, student loans and child-support payments, as well as your future mortgage payment. Divide the sum by your monthly gross income. If the result is more than 0.44, or 44 percent, it may be beneficial to either wait to apply for a conventional mortgage or choose an FHA loan instead.
This is one of the two debt to income ratios that lenders consider during the mortgage application process. To calculate your housing ratio, simply divide your potential monthly mortgage payment — principal, interest, taxes, insurance and HOA dues if applicable — by your gross monthly income. Most conventional lenders prefer that borrowers have a housing ratio of less than 28 percent, or 0.28. If your result is higher than 0.28, you might have difficulty qualifying for your conventional loan.
Generally, conventional refinance only requires 5% equity, and 20% equity if you want to pull cash out. This is for owner occupied single family residence. If it’s an investment property or second home it requires more equity.
Karri O10 May 2019
Great people to work with, very attentive and helped me through...read more
Fred D01 Nov 2017
I couldn't be happier with Mary Vrana, Tracy McCutchan and...read more
Maddy C25 Oct 2017
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I was very impressed on their efficiency, immediate help, answering...read more
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The Sun American Mortgage and Mary Vrana's team did a...read more
Carrie P25 Oct 2017
My husband and I just bought our new home and...read more
Rafael C27 Oct 2017
As always Derek Hargrove and his team has come through...read more
Betty R28 Sep 2017
Parker Turk is a wonderful person. He took great care...read more
David B29 Sep 2017
As far as mortgage transactions go, this one was relatively...read more