Bee's Streamline Refinance Advantage
July 5, 2023
• Apply • Approve • Close
A streamline refinance as easy as 1-2-3!
As mortgage rates drop you might consider refinancing into a lower rate. There are many options to refinance, and a lot of advertising saying it’s easier to do with your current lender or loan servicer. This is not so. No matter who you apply with to refinance, you’ll have to submit the same loan application, and income and asset information to qualify. So what is the difference?
If a lender is selling you on a “streamline” refinance, beware, not all “streamline” refinances are actually streamlined, meaning you’ll close faster or do less work. The only type of loan the government calls a streamline is an FHA loan that comes with a bunch of refinance restrictions and additional lender overlays, meaning, more underwriting guidelines. Just as all lenders are not equal in execution–some close slow, others fast–so is the difference between one lender’s interpretation of what streamline actually means and does.
To us at Bee Mortgage in Nocatee, Ponte Vedra and Warsaw, Indiana, streamline means a proven system of processes that closes loans faster and is easier for the homeowner.
Not that we think we’re special by any means; after all, any mortgage company can do this, but few actually do for a variety of reasons. Whether it be unmotivated loan officers, processors, or underwriters at a big box lender; or simply inexperienced people pushing paperwork for banks, there’s always a reason a loan closing is delayed. And if a closing is delayed, the bank rarely takes responsibility for their mistakes or unresponsiveness, which is why the borrower has to pay for the typical rate lock extension.
At Bee, we approach each step differently. But first, let’s talk about why you might want to consider refinancing to begin with.
2022 & 2023: The Years of Higher Rates
When COVID hit the Federal Reserve dropped interest rates to near zero to combat the pandemic and stimulate the economy. Because of global supply chain bottlenecks specifically around the output of the supply chain, some of it worked, some of it didn’t. When this happened and rates plunged a bunch of people bought or refinanced homes with a historically low mortgage rate. The lowest I personally remember was a 30-year fixed rate at 2.75%. Incredible.
For those people who bought back then, it’s painful to have to buy another house due to a job relocation or other reasons. Buyers in 2022 & 2023 are paying more than double now than what they were paying in 2020 & 2021. But that’s life; rates cycle up and down in our central banking driven market.
What were mortgage rates the year you were born?
No matter where rates are, people still have to buy homes for themselves and their families.
You can’t escape homeownership no matter where interest rates are. If you bought a home in the latter half of 2022 or most of 2023, you likely got a rate that was in the high 5’s or 6’s, maybe even the 7’s, for a 30-year fixed rate mortgage. This has become the new normal, as they say. But believe it or not, rates in the 6’s, 7’s and 8’s are not historically high. That’s actually pretty low compared to where they are when your parents and grandparents were buying homes.
Perspective matters; and rates in the double digits didn't stop your parents and grandparents from buying a home and making it warm and loving, did it?
Nevertheless, if you did get a rate around 6 or 7, there’s an opportunity to save a lot of money on your mortgage by refinancing into a lower rate. Because higher interest rates also drove the rates on credit cards higher, you might be able to consolidate bills by refinancing with a much lower rate than what you get on an unsecured credit card. Homeowners can also refinance into a lower rate with a shorter term and pay less in interest plus pay the home off faster.
Many homeowners get refinance offers from their loan servicer and automatically assume that because they already have their loan it'll be easier and faster to refinance through them. This is not the case, and usually ends up costing the homeowner more time and money than going with a mortgage company that offers a real streamline refinance.
Common Complaints About Refinancing
- The process takes too long.
- I don't know what's going on with my loan.
- They always need something else.
- There's always a delay.
- Rate extension costs.
The Right Lender
Choosing the right lender is the most important thing you can do, no matter what. At Bee we only work with lending partners who share our passion for excellent service and commitment to offer customers low rates and fast closings. Anything else is unacceptable; we’ll fire the lender, and take our high valued entrusted customers’ business elsewhere. And while Bee works with many other lenders, the primary residential lender is United Wholesale Mortgage (UWM), who offers ultra-competitive rates and super fast appraisals and processing times. Most Bee loans with UWM close early and have unbeatable rates.
If you’ve ever had a bad lender, you know it. Most people don’t remember when things go smoothly, but if something goes wrong and the lender screws up, they never forget it. One of the benefits of working with a low rate mortgage broker in Florida and Indiana, like Bee Mortgage, is that we do all the work screening the lender for you; and only work with lenders that offer the best rates and service. Otherwise, we don’t use them, or they go out of business like a lot of lenders and other mortgage companies have in the past two years.
A Streamline Refi
- Apply on your own time, not the bank's
- Estimated time: Usually no longer than 30 minutes in most cases
No one life or schedule or calendar is the same. It simply sucks to be working around banker’s hours, endlessly waiting on them to do their job. At some point in the consolidation of the mortgage industry, the customer experience along with a primary customer satisfaction focus was lost in the bustle of regulations, tightening margins, and greedy banks. Simply put, Carl works different hours than Katie does and both have different times when they’re free and able to focus on applying for a streamline refinance to lower the rate and payment, or consolidate debt.
- Reviews are
- Estimate time: As fast as 8 days
While some unique properties require more documents, this is the part where you’ll most likely only send in the declaration page of your homeowners insurance policy. You can text or email that over to us, easy peasy. Most homeowners who are not taking cash out of equity in the refinance don’t need an appraisal. In the approval process we’ll make sure the title is clear, verify the taxes and any other dues are correct, then have an underwriter review the file for final approval. Once final approval is given we’ll have the closer and the title agent prepare the closing docs for e-signature (if able to be e-signed).
- This is the easy part!
- Estimate time: Usually no longer than 15 minutes in most cases
If we’re e-signing closing docs, it’s super easy and super fast, plus you never have to leave the couch. If we send a remote notary to your home, that’ll be easy too. Don’t worry though, the remote notary can meet you anywhere you want, so it’s convenient for your schedule. Once you get done signing, you’re done!
Rate & Term Refinance Examples
Example 1: Tucker bought his home in October 2022 and is considering refinancing now that rates have dropped.
- $450,000 Purchase price
- 29.3 years left on current loan
Current Loan $396,674
30-year Fixed Rate Mortgage
6.5% Fixed Interest Rate
$2,528 Monthly Principal & Interest Payment
$910,080 Total Loan Repayment
New Loan $401,500
30-year Fixed Rate Mortgage
5% Fixed Interest Rate
$2,155 Monthly Principal & Interest Payment
= $373/mo savings ($4,476 yearly savings)
$775,800 Total Loan Repayment
$910,080 old loan total repayment over 30 years
$775,800 new loan total repayment over 30 years
= $134,280 Loan repayment savings
- $4,826 Closing costs
= $129,454 total net savings
Tucker decides to invest his monthly savings
What could you do with an additional $393,616 in retirement savings? A lot, probably. We’ve heard a lot about higher rates and a possible recession, but in a prior blog post we talked about how to get over $350,000 out of your mortgage instead of paying it to the bank. In addition to leaving your high rate mortgage via a Bee streamline refinance, you could easily save over ½ a million dollars ($500,000) by following these proven strategies for leveraging current market rates and assets when it comes to your mortgage.
Example 2: Lisa bought her home in February 2023, has some equity, and is considering refinancing to lower the rate and consolidate some credit cards now that rates have dropped.
- $350,000 Purchase price
- 29.6 Years left on current loan
Current Loan $199,129
30-year Fixed Rate Mortgage
6.75% Fixed Interest Rate
$1,297 Monthly Principal & Interest Payment
$25,000 Credit Card Debt (22% interest rate)
$500 Monthly Payment
$43,390 Total Payoff (if she doesn't use it anymore)
$1,797/mo Mortgage & Credit Card
$502,528 Total Mortgage & Credit Card Repayment
New Loan $230,125
30-year Fixed Rate Mortgage
5.25% Fixed Interest Rate
$1,271 Monthly Principal & Interest Payment
= $526/mo savings ($6,312 yearly savings)
$502,528 Old Total Mortgage & Credit Card Repayment
$457,560 New Total Loan Repayment
= $44,968 Total Repayment Savings
Lisa decides to invest her monthly savings
As you can see, investing the monthly payment savings can earn you over $575,000 to have for retirement instead of paying it to the bank. What a difference that can do for you peace of mind and comfort in reitrement! To get a personal strategy consultation for your mortgage and retirement savings, contact us today.
To see if you qualify for a streamline refinance, contact Bee at 855-626-1999 or apply here today!
If you’re ready to make the leap into homeownership, contact us today! Our dedicated loan experts will walk you through every step of the way ensuring you get a low rate and close quickly!
If you’re looking for a streamline refinance to lower the rate and payment, apply here today or call 855-626-1999 and speak with one of our expert loan officers in your area!
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