Closing times are always case by case and are influenced by many factors such as:

• The loan program
• Time it takes for appraisal to be received
• Time to receive documentation
• Time for underwriting and processing

Generally, the rule of thumb for refinance is within 30 days. This process can be a lot quicker without an appraisal.

Documentation needed does vary case-by-case and is based off of many factors. There is standard documentation that is need with each loan such as income documentation, mortgage statements, homeowner’s insurance, etc.

Private mortgage insurance, also referred as PMI, is mortgage insurance you may be required to pay on a conventional loan. Private mortgage insurance protects the lender if you stop making payments on your loan. PMI is usually required on loans with a down payment less than 20%. You may request that your service remove your PMI after your loan-to-value (LTV) ratio is 80%. Your PMI will automatically drop off once your LTV reaches 78%. PMI is different than the FHA mortgage insurance premium, MIP.

MIP is mortgage insurance that is required on all FHA loans regardless of the down payment size. The mortgage insurance premium is paid annually to your servicer to protect them in case you default on your loan. You make monthly payment to your escrow account to pay for the MIP each year. When you close on your loan you also pay an upfront mortgage insurance premium (UFMIP) which may be financed into your loan amount. The MIP and UFMIP amount is 1.75% of your total loan amount.

The amount of equity you can cash out on your home is based off of your Loan-to-Value ratio (LTV). For conventional loans, you can typically borrow up to 80% of the home’s value. On FHA loans you can typically borrower up to 85% of the home’s value. Your credit score does play a role in this limit.

In some instances, you may receive an appraisal waiver which allows you to skip the appraisal. This is determined by an automated underwriting system that takes multiple factors based on recently sold homes in the area into consideration. If you do need an appraisal, your mortgage loan officer will order this for you. The appraiser will then reach out to you to schedule a good day and time for them to come out.