Best Mortgage Refinance Companies in Scranton, PA

Scranton, PA Mortgage Refinance FAQs

• What can a second mortgage do for Scranton residents?

  A second mortgage can function in the same way as a credit card and allow Scranton residents to get approved for borrowing a certain amount. They may use this money for personal purposes. The entire amount that has been approved need not be spent; the borrower is only required to pay for the amount that they actually used.

• How is a Scranton resident‚Äôs credit rating determined?

  A Scranton resident’s credit rating is determined by taking into account two key factors — the FICO score and the DTI ratio. The FICO score is calculated through a formula that uses relevant items in the borrower’s credit history and comes up with a score between 300 and 850. The DTI is the debt-to-income ratio, which is the income left after the borrower has settled all their minimum loan payments per month.

• Can Scranton borrowers get a Freddie Mac refinance?

  Yes, a Scranton borrower can obtain Freddie Mac refinancing, which is known as a Freddie Mac Enhanced Relief Refinance. This mortgage type provides an opportunity to a borrower with a current Freddie Mac mortgage who pays on time but could not take advantage of Freddie Mac’s standard no cash-out refinancing since the new mortgage exceeds their maximum loan-to-value limits.

• What does it mean for a Scranton resident if they are offered a 2/1 buy down mortgage?

  A 2/1 buy down mortgage lets Scranton borrowers qualify for interest below existing market rates to allow them to borrow more. The rate rises by 1% at the close of the first and second years. Afterward, it stays fixed until the loan ends. Borrowers usually refinance after the second year for ideal long-term interest rates. Even so, keeping their original loan for at least three years lets them maintain a rate along original market conditions.

• What does assumability mean for Scranton refinance borrowers?

  An assumable Scranton mortgage allows homeowners to transfer their loan to a new buyer. This process generally entails a need to check on the new borrower’s credit, and there may be a fee charged by lenders to complete the assumption. An exception could apply to mortgages with due-on-sale clauses; they may not be qualified for an assumption.