How Does Refinancing a Mortgage Work?

Dec 13, 2023 | Business

In an ever-changing interest rate environment, homeowners in Singapore may consider refinancing their home loans to reduce their monthly mortgage monthly repayments. What exactly does refinancing your home loan entail? In simple terms, mortgage refinancing involves replacing your existing home loan with a different loan from another bank. Keep reading to find out how to refinance your home loan in Singapore.

How Does Refinancing a Mortgage Work?

When you apply for mortgage refinancing with a new bank, the bank will review information like your income, credit score and assets to determine if you fulfil the refinancing requirements. If you’re deemed eligible for mortgage refinancing, your application will be approved, and the new bank will proceed to pay off the existing loan with your previous lender. You will now service your mortgage with the new lender under the terms of the new loan agreement.

When should you refinance your home loan

You may consider refinancing your home loan if you are paying a higher interest rate on your existing loan than the prevailing interest rate. By switching to a loan with a lower interest rate, you can potentially lower your monthly mortgage monthly repayments. If you wish to change your loan tenure or release equity from your home, mortgage refinancing may be an option worth exploring.

That said, bear in mind that there are crucial considerations before deciding to refinance your home loan:

Lock-in period: Home loans typically come with a lock-in period, during which the borrower is contractually obliged to commit to the loan agreement in exchange for a specific interest rate or promotional term. If you wish to refinance or pay off your loan in full during the lock-in period, you may incur hefty penalties. Hence, it is always prudent to check if your existing home loan is still within the lock-in period.

Early redemption fees: You may be liable for early redemption penalties if you pay off your existing home loan earlier than the final repayment date.

Legal and valuation fees: If you wish to refinance your mortgage loan, you may be required to reimburse your lender for subsidies and rebates offered at the start of your existing home loan, such as legal and valuation fees.

Total Debt Servicing Ratio (TDSR): The Total Debt Servicing Ratio (TDSR) refers to the percentage of a borrower’s monthly income used to repay monthly debt obligations, including any new loans that are applied for. Under the TDSR regulation, your total monthly debt obligations cannot exceed 55% of your monthly income.

Mortgage Servicing Ratio (MSR): The Mortgage Servicing Ratio (MSR) refers to the percentage of a borrower’s monthly income used to repay all mortgage loans, including any new loans that are applied for. Under the MSR regulation, your monthly mortgage instalments cannot exceed 30% of your monthly income. (This is applicable to the financing of HDB properties.)

Conclusion

Refinancing your home loan can be a plausible solution if you wish to lower your monthly mortgage instalments or change your loan tenure. Before applying for mortgage refinancing, it is prudent to consider crucial factors like the lock-in period of your existing loan, any potential penalties, and your financial situation. If you’d like to explore mortgage refinancing options with Citi, check out Citi’s Mortgage Calculator and get in touch with mortgage advisors from Citi.

Disclaimer

The content reflects the view of the article’s author and does not necessarily reflect the views of Citi or its employees. Please read the products and offers on the Citi Singapore website for accuracy or completeness of the information presented in the article.


Topic: Press release summary

Florida’s VA Mortgage Center Expands to New Tampa Office

Sep 22, 2023 | Business

 VA mortgages in Tampa have become increasingly popular with Veterans and Active Duty military due to the proximity of MacDill air Force Base. Florida’s VA Mortgage Center plans to capitalize on the trend by establishing a local presence. Located in the heart of Tampa right in Rocky Point, Florida’s VA Mortgage Center Tampa Office serves Tampa and surrounding areas.

“Our clients really want to be able to work with someone local and trusted. With that in mind, expanding our retail presence in Tampa is very important to us,” said Rick Foxx, President of Florida’s VA Mortgage Center.”

“Opening an office in Tampa was a no brainer! Our clients expressed frustration trying to find and meet with a VA Mortgage professional in Florida to discuss their situation face to face, because most VA Mortgage companies are based in other states and lack a physical office in the Sunshine State. So we are excited and hope this office in Tampa gives people more options to talk to a local professional about VA Mortgages.”

With interest in VA mortgages in Tampa at an all-time high, Florida’s VA Mortgage Center aims to serve the local community by providing unsurpassed service with passion and providing as much information as possible to anyone interested in learning more about VA Mortgage in Tampa.

“You can’t replace looking someone right in the eye when you are doing business, especially business as important as buying a home. Our goal is complete statewide coverage for anyone in Florida who wants to learn more about a VA Mortgage locally.

“Don’t be fooled by celerity endorsements; we know VA Mortgages and the Florida market better than anyone, it’s all we do!” concluded Mr. Foxx.

A VA Mortgage is a mortgage available to Veterans and Active Military that does not require a large down payment. The Veteran Administration (VA) guarantees the loans, making the loan virtually risk-free to he lender, so zero down payment is available to Veterans and Active Military members.

About Florida’s VA Mortgage Center:

Florida’s VA Mortgage Center (NMLS # 1299512) is a niche mortgage brokerage firm that specialized in VA Mortgages in Florida market. Dedicated to providing VA Mortgage products to Veterans and Active Military, Florida’s VA Mortgage Center is community driven and locally focused. The Tampa office is located at 3030 N Rocky Point Dr #150A, Tampa, FL 33607

Phone: (813) 488-0393; meetings by appointment only. Go to http://www.FLVMC.COM/ to learn more or to find a location near you.

Florida’s VA Mortgage Center
Rick Foxx
(813)488-0393
https://www.FLVMC.com

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  • Banking & Financial Services

Redwood Mortgage Chooses QCommission to Simplify Their Sales Commission Process

Aug 24, 2021 | Business

 CellarStone Inc., provider of the leading sales commission software in the market as well as sales performance management software and other solutions, is excited to share that Redwood Mortgage has chosen QCommission to simplify their company’s sales commission process.

Redwood Mortgage provides quality mortgage lending within California for both residential and commercial properties. Founded in 1978, Redwood Mortgage is an established financial organization with more than 35 years of experience in arranging and funding mortgage loans in California. Redwood Mortgage and its affiliates have arranged around 2 billion dollars in loans and currently manage a loan portfolio of over $275,000,000. They provide tailor-made loan direct funded solutions secured by residential, multifamily, and commercial properties.

Redwood Mortgage used to calculate commissions manually using Excel and a 3rd party application report. Samina Shaheen, Compensation Specialist, spends time mining the data manually to make sure it lines up to their commission rules for all their Agents, Brokers, and Managers. One of their key struggles was calculating override commissions when the manager has cross overs to other tiers. Also, due to new commission rules, performing clean calculations in Excel became a time-consuming task every pay period. The company had new commission fees in place and Samina wanted to have accurate calculations and the ability to handle various scenarios for current plans as well as new changes down the road.

The QCommission team was able to design commission rules within QCommission for Redwood Mortgage in such a way that it can easily process their current needs as well as accommodate future changes. 3 different commission plan incentives were successfully configured within QCommission: Personal Production Commission, Closed Loan Volume Bonus, and Override Commission.

“I am very happy to have professional looking commission statements being produced every month without any delay to my team,” shared Samina Shaheen, Compensation Specialist.

CellarStone’s Vice President of Sales and Marketing, David Carlson, also had this to share, “A lot of us have been highly reliant on using spreadsheets for commissions, which is a manual process. Spreadsheets, over time, have become an application, but it shouldn’t be one because it’s very error prone. There are a lot of competitors in the market today, but as you can see, QCommission is the more appropriate choice based on value, functionality, large install base, and ability to handle complex computations. We are happy that Redwood Mortgage decided to automate their sales commission process using QCommission and that they are now enjoying its benefits.”

About CellarStone and QCommission

With more than 1,700 customers located in 50+ countries, Cellarstone, Inc. is a premier firm and market leader in the Sales Compensation Management, Sales Operations, and Sales Analytics arena. CellarStone works with IT, Finance, Human Resources, and Sales to manage and implement variable pay and sales commission systems.

Currently, QCommission has 20 vertical-specific templates, more than 40 direct integrations with the most popular CRM and Finance systems, and at least 150 available reports and analytics.

For more information, please visit www.qcommission.com.

CellarStone, Inc.

Gopi Mattel

1-650-242-0008

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  • Software

Pangea Mortgage Capital Closes Hotel-to-Multifamily Conversion in 15 Days

Aug 17, 2021 | Business

 Pangea Mortgage Capital (PMC), a nationwide commercial lender headquartered in Chicago, Illinois, closed a $16.4 million loan for the acquisition and repositioning of a three-asset hotel portfolio located in Lincoln City and Medford, Oregon.

At the start of the second quarter of 2021, an Oregon-based real estate investor sought an acquisition loan for a three-asset hotel portfolio. The business plan included master-leasing the properties to a government agency and eventually converting the properties to multifamily housing.

The sponsor engaged PMC because he needed certainty of execution and to fund the transaction quickly – as soon as the loan closed, the contract went into effect, immediately opening up the revenue stream for the borrower.

PMC conducted all diligence and closed the loan (from term sheet to funding) in 15 calendar days while providing financing that was flexible enough to allow for initial lease payments to fund the eventual construction.

View other recent transactions on the Pangea Mortgage Capital website.

About Pangea Mortgage Capital:

Pangea Mortgage Capital (the “Company”) is a nationwide commercial lender headquartered in Chicago, Illinois. PMC provides financing on real estate-backed assets, with loan sizes between $2 million and $40 million. The Company is a subsidiary of Pangea Properties, a national multifamily housing owner of 13,000+ units. It is PMC’s mission to serve lower and middle market real estate investors, owners, and operators by unlocking value through creative, flexible transactions and leveraging its on-balance sheet capital to execute efficiently. To learn more about the Company, please visit www.pangeamortgage.com.

Taylor Johnson

Matt Baker

(312) 267-4512

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  • Business
  • Commercial Real Estate
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  • Investment
  • Mergers & Acquisitions
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  • Residential Real Estate

Pangea Mortgage Capital Closes $8.5 Million Loan

Jul 21, 2021 | Business

 Pangea Mortgage Capital (“PMC”), a nationwide commercial lender headquartered in Chicago, Illinois, closed an $8.5 million loan for the acquisition and repositioning of a retail community center located in suburban Cleveland.

In the second quarter of 2021, PMC worked with an experienced, national retail owner-operator to provide acquisition financing for the 182,000 sq. ft. subject property. With PMC’s loan, the Borrower will be able to execute on their business plan to re-stabilize the center with new tenants that complement the existing lessees, thus unlocking the full value potential of the site. PMC’s team worked hand in hand with the Borrower’s leasing, property management, and asset management representatives to structure a loan that both provided cash for the initial acquisition, as well as additional proceeds for capital projects and future lease-up needs.

The floating-rate and interest-only loan has an initial term of 24 months with two six-month options to extend.

About Pangea Mortgage Capital:

Pangea Mortgage Capital (the “Company”) is a nationwide commercial lender headquartered in Chicago, Illinois. PMC provides financing on real estate-backed assets, with loan sizes between $2 million and $40 million. The Company is a subsidiary of Pangea Properties, a national multifamily housing owner of 13,000+ units. It is PMC’s mission to serve lower and middle market real estate investors, owners, and operators by unlocking value through creative, flexible transactions and leveraging its on-balance sheet capital to execute efficiently. To learn more about the Company, please visit www.pangeamortgage.com.

Taylor Johnson

Gretchen Muller

(312) 267-4511

Matt Baker

mbaker@taylorjohnson.com

(312) 267-4512

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Categories

  • Business
  • Commercial Real Estate
  • Finance
  • Mergers & Acquisitions
  • Real Estate