Refinancing a Self-Employed Home Loan
If you’re a self-employed homeowner, then you’re in luck: rates have dropped on bank statement mortgage loans. This means a refinance isn’t just within reach (and simple) for your household — but it can now save you serious money, too. Here’s a little more insight on why now is the perfect time to refinance your self-employed home loan.
Self-employed Bank Statement Loan Rates
Bank statement loans are the mortgage of choice for most self-employed professionals. Where traditional mortgages require W2s, income tax returns and employment verifications, bank statement loans make qualifying much easier — especially for self-employed applicants whose tax returns might not depict their full financial picture.
With these loans, self-employed pros can simply use 12 to 24 months’ worth of personal or business bank statements. This shows the lender you have solid cash flow and income while easing the documentation process on your end. It’s a no-brainer.
But until recently, there was a catch: Interest rates on bank statement loans were pretty high. Typically, they clocked in between 1 and 2% higher than those on traditional mortgages. Now, the tables have turned.
A Rate Drop for Self-employed Home Loans
According to the credit rating agency DBRS, non-QM loans (the category of mortgages that bank statement loans fall into) are performing extremely well. In fact, fewer than 4% of non-QM borrowers are 60 days or more behind on their loan — that’s better than the delinquency rate on both VA loans and FHA loans (and by quite a lot).
This high rate of repayment is good news for those who invest in these loan portfolios, and it means lower interest rates as a result. Put simply, everyone wins.
Refinancing: Mortgages for Self-Employed People
These lower interest rates present a prime opportunity for self-employed homeowners to refinance their existing mortgage loans. In fact, according to data firm Black Knight, nearly all loans originated in 2018 can now see a rate drop by refinancing to today’s current rates.
Ultimately, that would mean a lower monthly payment, less paid interest and thousands saved over the life of the loan. Sounds tempting, right?
Considering a Cash-out Refinance?
If you opt for a cash-out refinance, it could also mean access to serious equity that can help you make valuable home repairs, pay off high-interest debt, or buy additional real estate, even better, take that vacation you’ve always wanted.
Ready to Get Started?
If you’re a self-employed homeowner, there’s never been a better time to refinance. At HomeLife Mortgage, we are here to help. Our bank statement loans are simple, offer high balances, require no private mortgage and come with no pre-payment penalties whatsoever. Download our ebook, Ultimate Guide for Self-Employed Bank Statement Mortgages, or contact us to discover how much you could save by refinancing.
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About HomeLife Mortgage
For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing. HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Non-Prime Loans, Real Estate Investor Loans, Bank Statement Loans, FHA Loans and VA Loans.