Refinancing FAQs

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Why should I refinance?
There are many reasons to refinance a loan including a lower monthly payment, lower interest rate, switch loan type, and pay off debt quicker.

What is LTV and why does it matter?
Loan-to-value or LTV is the total amount of liens on the property divided by the fair market value of the property.

How do I figure out how much equity I have?
A good way to estimate how much equity you have in your home is to take your home's value and then subtract all amounts that are owed on that property. The difference you end up with is the amount of equity you have. First Liberty Mortgage can help you determine the value of your home.

How can I find out the value of my home?
At the time of your loan application, the bank will determine the value of your home based on a variety of factors and variables. To gain an idea of your home’s value, you can contact a First Liberty Mortgage lending expert to assist you with determining your home’s value.

Is my interest tax deductible?
While it is always necessary to consult with a qualified tax advisor regarding tax matters and your specific situation, it is possible that the interest you pay on a loan, secured by your primary residence, will be tax deductible.

Is a home appraisal required?
It is not always necessary to conduct an appraisal; however, there are times when an appraisal is required. Upon reviewing your application, and collateral information, a lender will determine whether an appraisal is needed for your situation.

What is a HARP loan?
The Home Affordable Refinance Program (HARP 2.0) is a government program designed to assist homeowners in refinancing their mortgages, even in cases where more than the home’s current value is owed. First Liberty can help you determine if you qualify for a HARP loan.

What is a reverse mortgage?
Reverse mortgages are available to borrows over 62 years of age and enable them to convert part of the equity in their home into cash. Reverse mortgages were designed to help people in or near retirement, and with limited income, use the money they have put into their homes to pay off debts, cover basic monthly living expenses or pay for health care. The loan is called a reverse mortgage because the lender makes payments to the borrower.