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Best Mortgage Lenders for a Refinance in Rhode Island • Benzinga

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Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

As your financial situation changes over time, your mortgage loan needs may also shift and change. A refinance can help you manage your monthly mortgage payments while also staying in the home that you love. If you’re thinking about applying for a refinance in Rhode Island, be sure to read our complete guide to refinancing and the best places to refinance a mortgage before you dive in. 

Refinance Calculator

Best Refinance Lenders in Rhode Island

From Quicken Loans’ streamlined Rocket Mortgage platform to highly rated VA loan refinances from Veterans United, buyers in Rhode Island have plenty of refinance options. If you aren’t sure where you want to refinance, consider a few of our top choices below. 

Credible Mortgages


Avg. Days to Close Loan

30 – 45


Get started

securely through Credible Mortgages’s website

Get Matched with a Lender


Avg. Days to Close Loan

10-40


Get started

securely through Get Matched with a Lender’s website

Quicken Loans Mortgage


Avg. Days to Close Loan

30


Get started

securely through Quicken Loans Mortgage’s website

Avg. Days to Close Loan

30

1 Minute Review

Quicken Loans® offers award-winning customer service for both originating and servicing mortgages. This means you’re taken care of at every step of the mortgage process. Quicken Loans® offers a range of mortgage products. You can apply for its loans from the comfort of your home by phone or online through Rocket Mortgage® by Quicken Loans®.

Best For
  • People who prefer online service
  • People who want a range of home loan options
  • People who want to refinance
Pros
  • Extensive customer service availability
  • Government-backed and conventional loan options for home buyers
  • Works with investors and people buying second homes
Cons
  • No in-person service options
  • No home equity loans or lines of credit

Veterans United Mortgage


Avg. Days to Close Loan

30


Get started

securely through Veterans United Mortgage’s website

Current Rhode Island Refinance Rates

When you refinance a mortgage loan, your lender will offer you a new interest rate. The interest rate you pay will be heavily influenced by current market rates, which go up and down over time. Your local housing market, current bond interest rates and even the current state of the overall economy can all play a role in what you pay for your refinance.

Before you apply for a refinance, take some time to track how mortgage rates in your area are changing. Here’s a sample of what you might expect to pay for your loan if you took it out today.

Rates based on a loan amount of $175,000 and property value of $225,000.

Refinance Process

Most refinance lenders have a very similar refinancing process. Whether you choose a local bank or an online mortgage lender to service your refinance, expect to go through the following 5 basic steps.  

Step 1: Lay Out Your Goals

Before you submit your application to refinance, you need to decide which type of refinance you want. There are 2 major types of refinances:

  • Rate or term refinance: Rate or term refinances mean you’ll adjust your mortgage interest rate or change the number of months you have to pay off your loan. If you take a longer mortgage term, your monthly payment decreases. If you take a shorter term, your monthly payment increases, but you pay less in interest over time. If you refinance only your mortgage rate, you’ll accept a rate that’s on par with current average rates in your area.
  • Cash-out refinance: If you take a cash-out refinance, you accept a loan with a higher principal balance. After your refinance closes, your lender offers you the difference in cash. For example, if you have a mortgage loan with a $150,000 balance and you need $10,000, your lender would give you a loan worth $160,000 and $10,000 in cash after closing.

Use a mortgage amortization calculator to determine what you can afford to pay each month and what you’d like to get out of your refinance before you apply. 

Step 2: Choose a Lender and Apply

Many homeowners refinance their mortgages with the same company that serviced their original loan. However, if you’re unsatisfied with your current lender or your lender doesn’t offer the type of loan you need, you can refinance with a new one. Explore lender options in your area or check out our top lenders above before you decide which company is right for you.

When you find the lender you want to work with, apply for a refinance loan. Most lenders now allow you to apply for a new loan completely online but you might have the option to apply in person if you choose a local branch. Your lender will usually ask you for financial documentation when you apply for your loan, including:

  • Your 2 most recent bank statements
  • Your 2 most recent W-2 forms
  • Your 2 most recent pay stubs

If you’re self-employed, you might need to provide your full tax return from the previous year. 

Step 3: Lock In Your Rate

The best refinance mortgage companies will return a refinance decision to you within a few days of applying. In many cases, you’ll receive a Loan Estimate instantly after you submit your application.

Your lender will usually offer you the option to lock in your interest rate while the underwriting process is going on. If you’re satisfied with the rate you receive on your Loan Estimate, it’s usually a good idea to lock it in.  

Step 4: Appraisal and Underwriting

As soon as you apply for your refinance, your lender will begin underwriting your loan. During underwriting, your lender will verify your financial information, check your credit and prepare your loan paperwork.

Your lender will also order a new appraisal in most cases. Unlike when you originally bought your home, you’re now free to attend your appraisal. If you’ve made permanent upgrades to your home since you moved in, you might want to create a list of renovations and additions for your appraiser. 

Step 5: Close on Your Loan

After refinancing closes, your lender will send you a Closing Disclosure with the final terms of your loan. Acknowledge your Closing Disclosure with your lender and proceed to closing.

At closing, you’ll sign on your new loan and ask any last-minute questions for your lender. Be sure to bring your ID, Closing Disclosure and proof of transfer for your closing costs to your closing meeting. 

When Should You Refinance in Rhode Island?

There are many reasons why you might need to apply for a refinance. Some of the benefits of refinancing may include:

  • Taking on a more manageable mortgage payment: If you miss monthly payments on your loan you can quickly fall into foreclosure. Refinancing to a longer mortgage term lowers what you owe each month, which can make managing your loan easier.
  • Paying off high-interest debt: Many homeowners take a cash-out refinance when they need to pay off high-interest debt like student loan or credit card debt because mortgage loans often have lower interest rates. Depending on current market rates and the kind of debt you’ve incurred, you might end up paying up to 10 percentage points less in interest when you consolidate your debt into your mortgage.
  • Locking into a lower interest rate: Finding the lowest possible mortgage interest rate for your loan can mean thousands of dollars saved by the time you own your property in full. If you locked into your loan when rates were high, you may want to refinance when rates are lower.  

When Should You Not Refinance?

Even when you’re working with the best mortgage company, refinancing isn’t always the best solution. Let’s take a look at a few situations in which you might not want to refinance.

  • Your loan is new. In order to take cash out of your home equity, you need to already have a significant amount of equity built in your property. If your loan is new, you might not have enough equity to justify taking a cash-out refinance.
  • You can’t afford closing costs. If you cannot afford your closing costs, your lender might offer to roll them into the principal balance of your loan with a no-closing-cost refinance. However, this option usually comes with a higher interest rate and is significantly more expensive in the long term than just paying your closing costs upfront. Wait until you can afford to pay your closing costs before refinancing.
  • You plan on selling your home soon. If you plan on selling your home within the next few years, you could end up paying more in closing costs than you save by refinancing. 

Bad Credit Refinance

One of the first things your lender will look at when you apply for a refinance is your credit profile. If a lender sees that you have a poor credit score, it might assume that you have a history of borrowing too much money or mismanaging your credit. This can make it harder to find a lender that fits your needs.

There are a few options that you can use to refinance with a bad credit score. First, consider an FHA streamline refinance or a VA interest rate reduction refinance loan (VA IRRRL). Both the FHA streamline and the VA IRRRL allow you to refinance without getting a new appraisal or credit check. This can offer an ideal solution for homeowners who have a government-backed FHA or VA loan who want to refinance their rate or term with bad credit.

If you don’t already have an FHA loan or a VA loan, you cannot refinance with a streamline or VA IRRRL. However, you might be able to refinance with a non-occupying co-client. A non-occupying co-client is someone who you add to your loan but who doesn’t live on your property. If you add a non-occupying co-client to your loan, you can use his or her credit to justify your refinance. However, if you fail to pay back your loan, your lender can pursue the co-client for your missed payments. Be 100% positive you’ll be able to manage your new loan before asking a co-client to sign onto your refinance. 

Refinancing in Rhode Island

Refinancing your mortgage loan can provide you with tons of benefits, especially if your financial situation has changed since you got your loan. However, refinancing isn’t free — you might end up paying thousands of dollars in closing costs by the time you factor in all of your expenses. Like any type of mortgage commitment, carefully weigh the pros and cons before you apply for a refinance. 



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Possible Raises Series B and Moves Fully Remote | State News

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SEATLLE, Oct. 20, 2020 /PRNewswire/ — Possible raises $11 million in new equity funding to expand the team and to provide additional products for its customers. Union Square Ventures led the round, with participation from existing investors Canvas Ventures, Unlock Venture Partners, Columbia Pacific Advisors, Union Bay Partners, Tom Williams, and FJ Labs. The company has also secured $80 million in new debt financing from Park Cities Advisors.

Furthermore, the company is now fully remote and recently onboarded software engineers from across the US and the globe. Possible is committed to distributed work and actively recruiting for a number of other remote roles.

Possible provides friendly access to capital and a simple way to build credit for people who otherwise would get a payday loan or get hit with a bank overdraft fee. The company uses real-time financial data, rather than a credit score, to qualify customers and provide funds instantly through its iTunes and Android apps. Unlike payday loans or overdraft fees, Possible loans are paid back in small installments over multiple pay periods to allow customers to catch their breath. By reporting on-time payments to the credit bureaus, Possible enables its customers to build credit history and eventually qualify for cheaper, longer term financial products. On average, customers with low credit scores see their scores increase by 70 points within 4 months.

Tony Huang, Possible’s CEO explains, “So many people who live paycheck to paycheck can’t afford to build credit history. We’re helping them do it for the first time while providing them with a friendlier and more affordable small-dollar loan.”

Since launching in June 2018, Possible’s given out loans to hundreds of thousands of customers, helping meet short-term cash needs while building credit history or establishing credit for the first time. These customers, often with bad credit or no credit history, are underserved by traditional banks. Possible fills that gap and provides financial access to those who need it most while giving them the means to climb their way out.

Gillian Munson, Partner at Union Square Ventures, explains the thesis behind their new investment, “Through tech innovation, data-driven insights, and a focus on the customer, Possible is well on its way to winning the hearts and minds of both consumers and regulators alike, and building a trusted brand that endures.”

A 2019 Experian study shows 34.8% of consumers are subprime and can’t access money when they need it. They pay $106 billion in punitive fees each year to the existing financial system for short-term credit products. These consumers are trapped in predatory debt cycles of payday loans and overdraft fees without the means to rebuild their credit or improve their financial health. While there has been a number of new tech-enabled products in this space, most lead to similar debt cycles and don’t address the harder issue of improving long-term financial health. That’s where Possible comes in.

Since the company is now fully remote, Possible is actively hiring talent across the globe. Tyler, Possible’s CTO, explains, “Being fully distributed allows us to access the talent pool of the entire world. Our success so far is a reflection of the quality of our people, and we believe hiring globally will allow us to find exceptional people to join us in achieving our mission.”

About Possible

Possible is a fintech company based in Seattle, Washington. The company provides a friendlier and easier way for customers to access capital while also building credit history and improving long-term financial health.

About Union Square Ventures

Union Square Ventures is a thesis-driven venture capital firm based in New York City. USV manages over $1 billion in capital across seven funds and focuses investments in portfolio companies with the potential to transform important markets.

About Park Cities Advisors LLC

Park Cities Advisors LLC (“PCA”) is a privately held, SEC-registered alternative credit manager based in Dallas, Texas. PCA is focused on private lending across the specialty finance and FinTech sectors and provides debt capital to companies across a variety of industries through asset-based financing transactions.



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Business Loans – Make The Right Choice!

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Your business needs funding and there’s no denying that! ‘You need money to make money’ and this is most applicable in the business world! While it is fairly easy to start with an awesome idea, to make a business profitable, you need to invest a good chunk of capital.

Whether to buy equipment or hire the right minds, you need capital! And the best way to go about it is to search for the ‘right’ business loan solution. Finding the ‘right’ one amongst the plethora of available options is a tricky decision.

You’ll be under stress to match the repayment frequency. And thus, your business will suffer. Hence, finalizing the right business financing solution after analyzing your business structure, repayment terms, cash-flow, and urgency is the best practice.

Here’s a detailed breakdown of which business financing solution or small business loan will help your business better!

1. For Real Estate – SBA

SBA loan is one of the most popular loans for small business owners. This is pretty straightforward to understand but involves extensive paperwork. If you need a place to kickstart your business, this is most suited for you.

It is issued by a private lending party or a bank. But the interesting part is that this loan can be guaranteed up to 85% by the federal agency—Small Business Administration (SBA). Hence, lending institutions are free and content to give the loan.

The best things about this loan are the lowest down payments and low-interest rates. If you wish to pay in the very long term, you can do so. An SBA loan involves a lot of flexibility. The condition being you should have the right financial service provider to guide you.

2. For An Equipment Or Any One-Off Loan – Equipment Financing, Term Loan

Do you need a new computer, or a tablet for your employee, or maybe a vehicle for your business’ delivery needs? Equipment financing is best suited for such kinds of needs. You can also get up to 100% financing solutions.

But there is one drawback that you should be aware of. As long as the repayments are done on time, you’ll continue to have access to the equipment. But the moment you fail short of your commitment, the lending institution has completed control over ceasing it.

A business term loan is another solution for this kind of requirement. Term loans are based on the ‘term’ that can be anywhere from 1 to 5 years. So, the repayment has to be made in that time-frame. If you’re looking for business loans in Edgewater, NJ, this will be just about right for you!

3. Need To Balance Cash Flow – Business Line of Credit

Business Line of Credit is the best financing solution that can help you with balancing your cash flow or handling any emergencies.

You get access to a limited amount of funds for a set period of time that you need to pay with interest and as soon as you pay it back, your specific balance sheet is turned back to ‘0’. This indicates that you’re again eligible for using that fund.

You can do it repetitively. There is no drawback to this mechanism. So every time you have an emergency fund need, you can look towards the business line of credit.

The only shortcoming of this system is that the interest rate is high and may require collaterals for approval. However, it is one of the most appealing choices if you need capital and have a bad credit score!

4. Credit Card Based Businesses – Merchant Cash Advance

Do you own a business that involves payments via credit cards? If yes, then the merchant cash advance is the right solution for you.

A business like retail or food chain that makes use of credit card transactions the most, can utilize merchant cash advance to boost its business. The way this financing system works is, the lender will enquire about your daily credit card transactions to the terminal provider and get your exact details. Then, he will compare it with the asked amount. If both are in accordance, you’ll become eligible for the advance.

The repayment term is interesting for this financing solution. Instead of getting a fixed rate, the advance provider will give you the figure in percentage. So every day if you make $1000 and the decided percentage is 5, then $50 will be ‘withheld’.

A merchant cash advance acts more like an investment than a loan!

5. Have No Collateral – Invoice Financing, Equipment Financing

Not all businesses have the luxury of putting collateral on the line and getting access to the desired fund. If you fall into the same category, you do not need to worry! Invoice financing can help you out even in this crunch situation.

Your account receivables serve as collateral in this financing solution and can help you get a loan up to 85% of its worth.

The only downside is the interest rate that is marginally higher than the traditional solutions.

Bonus: For A Small Duration – Short Term Loan

What if you need a loan just for 18 months? You have some debt or need to manage the cash flow, but your requirement is small. Which loan is right for you?

Well, you can opt for a short term loan. This loan gives you instant access to a lump sum of money that should be paid within the next 18 months.

The best part about this loan is that bad credit doesn’t bother the process!

This can also support businesses that need temporary loans to manage or settle a few things. Businesses that do not need some loan that lasts for years!

But just like all other financing solutions, this loan as well comes with a few drawbacks.

The first one being the annual cost will be slightly towards the higher side and the second being that a few businesses may find it hard to cope-up with the weekly payments.

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Financial advisor Helen Baker shares the six saving tricks to help you save THOUSANDS

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A leading financial advisor has shared the saving tricks that will help you to save thousands in a short amount of time, including adopting the 50/30/20 method and never signing up for financial products on your partner’s behalf.

Helen Baker, from Queensland explained that if this year has shown us anything, it’s that you need to have some spare money in the bank in case of loss of income.

Helen revealed the top tips and tricks to help you save tens of thousands of dollars, no matter what your salary or financial goals are.

Helen Baker (pictured), from Queensland, shared the saving tricks that will help you to save thousands in a short amount of time

Helen Baker (pictured), from Queensland, shared the saving tricks that will help you to save thousands in a short amount of time

1. Use the 50/30/20 strategy to control spending

The first way that Helen said you can save a bit more than you already do is by adopting the 50/30/20 strategy to control your spending.

‘This simple yet effective budgeting method involves dividing your after-tax income into three categories,’ she told FEMAIL.

Put 50 per cent of your net income towards ‘must-haves’ like rent, utility bills, school fees and groceries, then reserve 30 per cent for your ‘wants’, like dining out, fashion and entertainment.

Finally, Helen said you need to keep 20 per cent back for loan repayments or building up your savings.

This simple approach will help you to save thousands over the course of a single year.

The first way that Helen said you can save a bit more than you already do is by adopting the 50/30/20 strategy to control your spending (stock image)

The first way that Helen said you can save a bit more than you already do is by adopting the 50/30/20 strategy to control your spending (stock image)

2. Consider salary sacrificing to superannuation

Helen’s second tip involves you voluntarily sacrificing some of your salary to your superannuation.

‘If you are looking to save a deposit for your first home, the First Home Super Saver Scheme enables you make voluntary contributions in your super fund and withdraw up to $30,000 of eligible contributions towards your home deposit,’ she said.

Concessional contributions made to an approved super fund are taxed at just 15 per cent, rather than the marginal rate of up to 46.5 per cent on your regular pay.

‘If you have an income of $70,000 and want to put $15,000 towards a home deposit, you can end up paying nearly $4,875 of that $15,000 in tax,’ she said.

By contrast, if you sacrifice $15,000 a year into your super through the First Home Super Save Scheme, you pay just $2,250 in tax per year and could have around $25,000 available for a home deposit after two years.

3. Avoid signing up for products on your partner’s behalf

It might feel tempting to sign up to products on your partner’s behalf as you are a couple, but Helen said it’s best to avoid taking out a credit card, loan or mobile phone plan on your partner’s behalf, in your name.

‘If your partner falls behind on repayments, it can affect both your credit ratings, and if you break up or your partner accumulated debt, and you are married or defacto, you will be liable for their debt,’ she explained.

Avoid rushing into joint bank accounts or co-signing loans, she added.

Even though it’s important to have joint finances and accounts when you’re in a long-term relationship or marriage, you must also have your own savings and emergency fund. 

Helen said it's best to avoid taking out a credit card, loan or mobile phone plan on your partner's behalf, in your name (stock image)

Helen said it’s best to avoid taking out a credit card, loan or mobile phone plan on your partner’s behalf, in your name (stock image)

4. Hide your savings account from yourself

When you set up a savings account, there is always a temptation to dip into it when you need a boost.

But Helen said you should set up a separate bank account for your savings, and ideally one that you can’t access with your current banking app.

‘Choose a savings account that charges withdrawal fees,’ she added – as the harder and more expensive it is to access your account, more likely you are to realise your savings goals.

5. Cut your spending instead of increasing your income

Smart spending can be just as good, if not better, than increasing your income, Helen said.

‘Look at expenses that you can cull, such as a subscription that you rarely use,’ Helen said. 

You could also cut dining out as much and look after your existing items so you can use them for a longer period. 

6. Create a bill strategy 

Helen recommends that you outline all of your bills in a spreadsheet so as to avoid incurring any late fees and pay every bill when it’s due. 

‘Ensure your calendar gives you adequate time to thoroughly check invoices and make sure you are not being overcharged,’ she said.

Try to group any bills into categories of $100, $100-$500 and $500 plus. 

‘Smaller bills, such as mobile phone plans or other monthly service utilities, can be paid by setting up automatic payments,’ she said.

‘Larger bills, such as tax, rent or mortgage repayments, require more diligence. It is also crucial to pay substantial bills on time to avoid incurring a bad credit rating.’ 

Helen is a spokesperson for money.com.au. For more information, please click here

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