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Maryland Refinance

Maryland FHA Mortgage

Maryland Refinance Mortgage - Learning Center.

A mortgage refinance is a way to either adjust your current loans term and/or rate. Borrowers may also extend the term to lower the payments or shorten the term of a loan to help reduce the amount of interest paid over the life of the loan.
The mortgage can be a financial tool. It may be used to help consolidate debt. Some refinances are cash outs or debt consolidation loans.  This may be done by borrowers in order to help lower the debt loads from credit cards, personal loans and other credit lines. Part of the refinance may also be tax deductible, you should consult a tax expert for tax advice.

Understanding a Maryland Mortgage Refinance Home Loan.

The types are refinances available vary greatly. It would be almost impossible to show each type of loan and refinancing scenario. It is best that we try to cover the most common types of refinances that consumers are trying to research. FHA, VA and Conventional standard refinance.

Some Basic Maryland FHA Refinance Mortgage Loan Guidelines.

Including - Maryland FHA Streamline Refinance Mortgages.

(These are just some recommendations for Maryland mortgages, please consult your loan officer on your loans specific requirement, Note, that lending institutions make determination on the borrowers ability to meet guidelines. Also please visit hud.gov and review HUD 4155.1 Rev 5 handbook and any update requirements. Requirements change regularly and although we strive to keep up with all new updates it is not always possible.)

Income - Borrowers should have an established income for two years. If there is no two year history of employment due to schooling then the borrower(s) should have an offer letter showing guaranteed job with income.

In addition, two months worth of pay stubs should be saved prior to applying for the refinancing loan program. Part time income should only be included if it is guaranteed and has been present for two years.

Reserve and Assets - There is no clear stated amount of reserves but regularly two months of purposed PITI (Principle-Interest-Taxes-Insurance) and any HOA or Condo fee be in reserve. Meaning, this accessible cash should be ‘seasoned’ in some form. ‘Seasoned’ refers to establish moneys not cash hidden under the mattress or flavored with salt and pepper (some humor).

Credit - Regularly, two years of credit history is recommended with 3 open and active credit lines in good standing. Although scores are not the main determination in credit approval a score of 660 or better would be recommended and scores over 720 are considered excellent. When it comes to FHA refinances the mortgage history should be 12 months and there should be no late payments.

Property - The property must be appraised by a FHA appraiser and meet FHA requirements.

FHA Streamline Refinance - FHA offers a streamline refinance mortgage program. The Maryland FHA Streamline refinance may also offer you a refund on your original funding fee and may require reduced documents for the new loan. If you are a current Maryland FHA mortgage borrower and you are interested in a streamline refinance you should request a rate quote. You may qualify for a simple rate reduction at a very low cost when streamlining a FHA Maryland mortgage.

Some Basic Conventional Maryland Mortgage Refinance Guidelines & Rules.

(These are just some recommendations, please consult your loan officer on your loans specific requirement, Note, that lending institutions make determination on the borrowers ability to meet guidelines. Requirements change regularly and although we strive to keep up with all new updates it is not always possible.)


Income - Borrowers should have an established income for two years. If there is usually a requirement that work history be established for a minimum of two years. If job change has occurred recently then the current employment information and the previous employment information should be provided. It is usually best if the new employment is in a similar profession as the previous employment an that there is little lag time between both employments.If there is little history of employment due to schooling then the borrower(s) should have an offer letter showing guaranteed job with income. It is preferred if the employment is in the same profession as the schooling trained. Two months worth of pay stubs should be saved prior to applying and two years of W2's. If self employed then 1099 and a Profit and loss statement from an accountant is recommend to help prove income. Part time income should only be included if it is guaranteed and has been present for two years.

Reserve and Assets - Regularly a minimum of two months of reserves is required. Larger amounts of reserves will assist in the approval process. At minimum two months of purposed PITI (Principle-Interest-Taxes-Insurance) and any HOA or Condo fee needs to be in reserve. Meaning, this accessible cash should be ‘seasoned’ in some form.

Credit - Regularly, two years of credit history is recommended with 3 open and active credit lines in good standing. Credit scoring is used in determining credit approval. A score of 680 or better would be recommended and scores over 720 are considered excellent.

Common documents needed when utilizing a Standard Maryland refinance Mortgage loan.

Original pay stubs for the previous month - but you should save at least the last 3 months.
Copies of your W2 for the last 2 years - be sure you have them for all borrowers on the loan.
For refinances - Copy of homeowners insurance - if you use a specific agent you should have their contact information available for the lender.
Copies of asset information - such as proof of money for closing costs  (if needed), 3 months worth of statements from your savings & checking accounts and investment records for mutual funds, stocks, bonds or other liquid investments.

Here are some simple steps to follow for Maryland refinance home loan:

  1. Gather the necessary documents (listed above  ‘Common Documents’)
  2. Get a copy of your most recent mortgage statement
  3. Now you are ready to get your Maryland refinance quote direct from a loan officer. Take all the information you have and consider getting a credit report. Then request a rate quote.
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