Frequently Asked Questions About Loan Refinance

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  • How to Claim Refinance Tax Deduction and is mortgage interest tax deductible?
    A deduction is a subtraction you can claim on your federal taxes that reduces your tax burden. There are a number of tax deductions that you can take advantage of if you refinance a mortgage loan. You can deduct the full amount of interest you pay on your loan in the last year if you did a standard refinance on a primary or secondary residence. You can only deduct 100% of your interest if you take a cash-out refinance, particularly if you use the money for a capital home improvement. Otherwise, you can only deduct the percentage of interest you paid on your original loan balance.


    You can also deduct your discount points and any closing costs you pay toward a refinance on an investment property. You must spread these costs over the total term of your refinance and can only deduct these expenses if you itemize your deductions.



  • How does refinancing affect your credit score?
    If you refinance your current mortgage please note your credit score (officially known as the FICO score) can be affected. This is because you are adding a new loan to an existing one. Nevertheless, this effect is usually only temporary.
  • What documentation should I have ready to request a refinance?
    1. Pay Stubs - You will be required to show your recent salary stubs. If you are self-employed you must provide two recent tax return forms as well as profit or loss forms. If you have other income sources please provide 1099 forms.

    2. Tax Returns and W-2s - Copies of your last W-2 statements and tax returns. Typically, lenders will ask for two years’ worth of information.

    3. Credit Report - It is very useful to have your credit score checked if this information is required by our lenders and risk analysts.

    4. Statements of Outstanding Debt - Details about your outstanding financial obligations. Account statements on all remaining debts, including your existing mortgage, home equity, lines of credit, car loans, and student loans.

    5. Statement of Assets - You will also need to provide details regarding your assets, properties, or savings. Ideally, Please note borrowers with assets under $ 200,000 will not be considered.
  • Is refinancing worth it?
    Yes, Refinancing can actually help you save money especially if the original loan you obtained had excessively high-interest rates. In this case, refinancing makes financial sense since it lowers the interest rate on your loan and can help you shorten the payment schedule.

    Another advantage of refinancing your mortgage is that you can obtain cash out to pay off existing credit card debts, student loans, or invest in a home improvement project.
  • Are home appraisals required for refinancing?
    Most lenders require that you get a home appraisal (valuation) before you refinance your mortgage. You may not need an appraisal to refinance your loan if you have an FHA loan, VA loan, or USDA loan. In some situations, you may be eligible for an appraisal waiver on a conventional loan as well. Consult with your loan advisor as to whether or not you are eligible for a property inspection waiver (PIW).

Frequently Asked Questions About Home Loans

Can’t find the answer you’re looking for? Reach out to one of our qualified loan officers team.

  • What documentation should I have to request a mortgage?
    1. Tax returns - You will need to fill in a Form 4506-T, and provide your tax forms (the last 2 years should suffice).

    2. Pay stubs, W-2s, or other proof of income -These include your recent salary stubs. If you are self-employed you must provide two recent tax return forms as well as profit or loss forms.

    3. Bank statements and other assets - This includes proof of your possessions, assets, as well as other investment assets such as life insurance.

    4. Credit history - Details of your credit history, including any episodes of bankruptcies or foreclosures.

    5. Gift letters - If any friend or family member wants to help you with the down payment by offering you some cash you must provide a “gift letter” which states that the money is a gift and not a loan.

    6. Photo ID - Recently taken personal photo passport style.

    7. Renting history - Your history as a tenant on rent to guarantee you can pay your rent bills on time.
  • How long does the process take?
    If all the documentation is in order and no unexpected issues are encountered, the process from the initial contact to the refinance approval can take as little as 10 days..
  • What are HOA fees?
    The HOA Fees aka Home Owners Association Fees are monthly payments for the maintenance of the common areas and amenities if you live in a joint association such as a block of flats or condominium association.
  • What is a down payment?
    A down payment is a type of payment, often in cash, made in the early stages of a purchase of a home. Our down payments can be as low as 3% depending on the type of loan except for the VA Loans (Veterans only), with a 0% down payment required.
  • What is the principal?
    The principal is the money that you originally agreed to pay back on a home loan or mortgage refinance.
  • What is the loan term?
    A loan term is the period of time a borrower takes to completely pay off a loan when payments are made out regularly and as previously agreed by both parties.

Frequently Asked Questions About How EMortgage Capital Works

Can’t find the answer you’re looking for? Reach out to one of our qualified loan officers team.

  • How long does the process take?
    If all the documentation is in order and no unexpected issues are encountered, the process from the initial contact to the refinance approval can take as little as 10 days..
  • How can I get in touch with a loan officer?
    We operate in and have licensed professionals in multiple states across the country.
    You can contact us by email, phone or by filling out a contact form. You may also check out our list of loan officers on this website under the “Find a Loan Officer” page.
    One of our licensed professionals will be more than delighted to reach out and assist you.

Frequently Asked Questions About Becoming a Loan Officer

Can’t find the answer you’re looking for? Reach out to one of our qualified loan officers team.

  • Am I paid 1099 or W2?
    Most states are paid 1099 with the proper license. Some exceptions: In CA, DBO requires W2. Additionally, Oregon and Arizona require W2. Note: If you obtain a license (under EMC) in a state outside of your home state, that can impact your payment status in your home state.
  • How often do I get paid?
    EMC takes pride in running payroll daily, EMC cuts commission checks once we have a complete file and funds have been received.
  • How do I price loans with EMC?
    EMC is approved by approximately 70 wholesale lenders and banks. You can price your scenario with the investor directly as EMC does not have its own rate sheet or through the company’s loan sifter account.
  • What type of loan origination software will I use?
    We offer our originators a seat on Calyx point to use any industry-standard loan origination software, Calyx, Encompass, etc. The most popular is Calyx Point. If you do not currently have Calyx, you can purchase a copy of Standard Calyx Point through EMC or you can purchase this or their upgraded Point Central directly from Calyx Point.

    

Alternately, you may piggyback on a current EMC branch's Point Central. This last option is slightly more expensive as it's plug-and-play and includes training.
  • How do I pull credit?
    We set you up with a sub-account with one of our approved credit vendors. Each loan officer and branch are responsible for their billing with each credit vendor.
  • Can I run my own ads?
    Yes, you can. However please note these ads must be previously approved by our Compliance Department. All advertising must be in EMC's name. This applies to any form of advertising, including, but not limited to, print, radio, television, and the internet. Any form of advertising without obtaining approval from EMC will lead to immediate termination. We take this very seriously.
  • I want to print my business resources, how can I arrange for that?
    Business cards and letterheads can be ordered directly from our website in our marketing hub and can be ready within a week of approval.

Frequently Asked Questions About Becoming a Branch Manager

Can’t find the answer you’re looking for? Reach out to one of our qualified loan officers team.

  • I want to open a branch. What do I need as a branch manager?
    To act as a branch manager, you must have experience in mortgage origination and receive pre-approval. EMC can split commission checks between the branch manager and his/her Jr. Loan Officer. However, these splits must be based on a predetermined agreed and fixed schedule.

Frequently Asked Questions About Mortgage Calculators

Can’t find the answer you’re looking for? Reach out to one of our qualified loan officers team.

  • Are Mortgage Calculators accurate?
    Yes, although you must consider all the variables such as downpayment, interest rates, the principal, and the correct period accurately.

    Take into account that in many mortgage loans, you can have a mixed interest agreement combining fixed and/or variable interest rates.

    With all this in mind, bear in mind that an online mortgage calculator is not definitive. It displays an estimation of your monthly expenses. For an accurate figure, do not hesitate to get in touch with us at E Mortgage.
  • What other costs should I take into account?
    There are supplementary costs to remember when projecting your mortgage bills, These include HOA fees, property taxes, homeowners insurance, or mortgage insurance. Some of these expenses you will have to cover are monthly and some are yearly but it’s best to keep them in mind when calculating your overall mortgage bill.

Irvine Headquarters Office

18071 Fitch Ste. 200

Irvine, CA 92614

(855) 569-3700

Hours: 8:00am - 7:00pm

customercare@emortgagecapital.com

Get in Touch

We are a financial mortgage company established in 2005 and proudly servicing the community with mutually beneficial home loans to our customers. Reach out to us. We will be happy to hear from you.