Our Most Frequently Asked Questions

How do I refinance my existing home loan?
How do I calculate the value of my property?
Can I make extra principal payments so I can pay off the loan more quickly?
What is a cash-out option?
What are the reasons for refinancing?
How do I apply for a refinance loan?
What are the costs involved in refinancing?
What criteria do lenders use when approving a loan?
How much documentation will I need to supply to verify the information I provided on my application?
What if I can't supply the standard documentation necessary to get a loan?
What is Private Mortgage Insurance (PMI) and why would I need it?
Do I need to get an appraisal when I refinance?
What is an impound/escrow account?
What is homeowner's insurance?
How does a refinance closing work?
Can I get a loan if I'm not a U.S. citizen or if I live outside the country?

How do I refinance my existing home loan?

To refinance your loan in order to obtain a lower interest rate and start saving on your monthly payments, ditech.com can offer you the following loan products with the security of fixed-rate payments:
15-Year Fixed-Rate Refinance
Choose this if:
- You want a shorter loan life and lower rates
- Low monthly payments are not a priority
- You're planning to stay in your house for more than 10 years - especially if you're planning to completely pay off your loan
ROLLDOWN OPTION
Our rolldown option allows you to refinance with few upfront fees! While the rate is slightly higher, you will pay few upfront fees to get your new loan. In effect, as long as our rolldown rate is lower than your existing rate, it makes financial sense to refinance because there is little or no cost in doing so.
CASH OUT OPTION
If your equity in your property qualifies, you can refinance with a loan amount greater than your current mortgage - and keep the difference! Use it for home improvement, debt consolidation, or whatever you want.
30-Year Fixed-Rate Refinance
Choose this when:
- You want low monthly payments that do not change
- You want a loan that's generally easier to qualify for
- You're planning to remain in your house less than 10 years
- You want the maximum tax advantage (please consult your tax adviser)

How do I calculate the value of my property?

Since a mortgage is a loan secured by a piece of real property, a crucial factor is in the correct value of the property in question.
Property value can be determined in a number of ways:
- The market value of the property - that is, what a buyer will pay for it and what other comparable properties (comps) in the neighborhood have recently sold for.
- The appraised value of the property - that is, what a trained and licensed professional deems the property to be worth based on an inspection, comps, and a thorough analysis of the property and its neighborhood.
Additionally, the appraiser estimates the replacement value of the property - that is, the cost to build a house of similar size and construction on a vacant lot. The appraiser reduces this cost by an age factor to take into account deterioration and depreciation.

Can I make extra principal payments so I can pay off the loan more quickly?

Depending on the loan, and what your state permits, it is feasible for you to make extra payments on the loan. Extra payments will have an effect on the amortization schedule over the remaining term of your loan.

What is a cash-out option?

If your equity in your property qualifies, you can refinance with a loan amount greater than your current mortgage - and keep the difference! Use it for home improvement, debt consolidation, or whatever you desire.

What are the reasons for refinancing?

There are many benefits to refinancing; it just depends on what your objectives are. Some of the most popular reasons are:
• To lower your monthly payments by refinancing at a lower interest rate.
• To convert a portion of your equity into cash by obtaining a new loan for a larger balance than your current loan.
• To switch from an adjustable rate to the stability of a fixed rate.
• To consolidate debt by refinancing a higher loan balance and using the cash difference to pay off credit cards, auto loans or other debts. Please consult you tax adviser for advice on paying short term debt with your mortgage loan.
• To pay off the mortgage sooner by switching to a shorter term.
Call us toll-free and speak to a personal loan consultant to find out if refinancing is right for you.

How do I apply for a refinance loan?

Either fill out the application online or call us directly and you may be approved in minutes.

What are the costs involved in refinancing?

The closing costs, including lender fees, are typically 1% to 2% of the loan amount. In addition, you may choose to pay points in order to get a lower rate, or accept a higher rate in exchange for having the lender pay some or all of your closing costs.

What criteria do lenders use when approving a loan?

Lenders look at three criteria: Capacity, Credit and Collateral.
CAPACITY
The lender will weigh your housing expenses and total debt against your monthly income to determine your ability to repay a loan. They all also need proof that you have the cash available for down payment and closing costs by verifying funds from sources such as bank accounts, stocks, bonds, mutual funds, sale of an existing home, or gifts from family members.
CREDIT
To determine your credit risk, the lender will look at previous mortgage payment history, rent payment history, credit card use and installment debt payment history. If you pay your bills regularly and on time, you are demonstrating the integrity that lenders are looking for in a borrower.
COLLATERAL
When you ask for a home loan, you are putting the home itself up for collateral, so the lender will want to know what the home is worth.

How much documentation will I need to supply to verify the information I provided on my application?

Every situation is different. Once you submit your loan application online you'll automatically receive a customized list of the documents you'll need to provide. If you apply over the phone, you'll receive this list within three business days.

What if I can't supply the standard documentation necessary to get a loan?

We offer special loan features that include low documentation or even no documentation. Call your personal loan consultant for more details.

What is Private Mortgage Insurance (PMI) and why would I need it?

In most cases, if your first mortgage amount is greater than 80% of the property's value, the lender may obtain Private Mortgage Insurance (PMI) to safeguard its investment against the possibility of default. PMI is collected monthly along with the mortgage. Within three days after your loan application is submitted you'll be sent an estimate projecting the amount of the monthly PMI payment. As your equity increases, you may qualify to have PMI removed. There may be ways to finance your home so that PMI is not required. Your loan consultant can provide you with more information.

Do I need to get an appraisal when I refinance?

Yes. However, if you're a current IndyMac Bank customer you may not be required to get an appraisal. Call your loan consultant for details.

What is an impound/escrow account?

Instead of paying large, lump sums to cover the costs of homeowner's insurance and property taxes, these payments are divided into installments which are paid to the lender monthly along with your loan principal and interest. The lender will hold the money in an impound/escrow account and make the payments from the account when they are due. Impound/escrow accounts may be optional, or they may be required by the lender, depending on the location of the property, the size of the loan in relation to the value of the property, and the loan type.

What is homeowner's insurance?

Homeowner's insurance is designed to protect your home. It is also known as hazard insurance, or fire insurance. While the lender requires this coverage, you determine which insurance company will carry the policy. Homeowner's insurance premiums are either paid directly to the insurance agency or by your lender through an impound/escrow account.

How does a refinance closing work?

The refinance closing will be conducted the same way that your loan was closed when you first purchased the property. Soon after your loan is approved your loan consultant will send a list of documents you'll need to bring to the closing. You'll also be sent an Estimated Settlement Statement that tells you the amount, if any, you'll need to bring to closing in the form of a cashier's check, as well as an outline of how the funds from your new loan will be disbursed. If this is a refinance of a primary residence, the loan won't actually fund until three business days after signing the loan documents, due to the borrower's right of rescission. To find out more, see in our Glossary.

Can I get a loan if I'm not a U.S. citizen or if I live outside the country?

Yes. As long as the property you are buying or refinancing is in the United States, you can apply right here online. We offer special programs for foreign nationals and resident aliens. Call one of our loan consultants toll-free to find out more.

Apply Now >>