Seize the opportunity to show high-debt clients how to consolidate their balances with a new mortgage and potentially save money each month to apply towards their principal and accelerate mortgage payoff (even with a higher-rate mortgage).

How to Choose the Refinance Option

When using the Debt Consolidation tool, you have two options for your type of loan: Refinance or Move Up Purchase. To get started with either option, follow the steps below:

1. Using the toggle bar, choose Refinance. 

2. Enter and select your client’s Name from the drop-down.
   1. If adding a new client, click + Add new. You will need to provide their name; however, all other fields are optional. Please note that if you would like to share these reports via email, you will need to add their email address.
3. Enter your client's Monthly Qualifying Income.
4. From here, begin entering the debts your client would like to consolidate. You can add up to 15 different debts. The information required includes:
   1. The debt's name
   2. Type of debt (Installment, Revolving, or Other)
   3. Total balance
   4. Monthly payment
5. Click Next.

You can review the steps for each option under the Refinance or Move-Up Purchase in the sections below.

Refinance: Step-by-Step

1. Enter your client’s existing property information under Existing Property. This includes:
   • Location (address, city, county, or zip code)
   • Original purchase price
   • Annual property tax in dollars or percent
   • Monthly home insurance
   • Association fees
   • Purchase year and month
   • Estimated home value
     • Note: Annual property tax, monthly home insurance and estimated home value will automatically be calculated, but these fields can be edited.
2. Next, enter details about the existing home loan.
   • Select if your client has refinanced in the past. 
     • If yes, you will need to select the refinance year and month from the drop-downs. 
   • Enter the Loan amount, Term, Loan Program and Type, Rate and Monthly Mortgage Insurance.
     • For help calculating the Monthly Mortgage Insurance, click Use worksheet. 
   • The Remaining Loan Balance and Monthly Payment will automatically populate, but these can be edited. 
3. The Total Equity will be calculated at the bottom of the page. Click Next. 

Next, enter the loan refinance terms and information.

1. The max Front Ratio and Back Ratio will be automatically generated. These fields are editable.

2. The target LTV will default to 75%, and the target loan amount will be calculated automatically. These two fields can be edited, and a change to one of these values will cause the other value to be recalculated.
3. Enter the loan’s term, program, type, interest rate, and any points being purchased.

4. Mortgage insurance will be automatically generated depending on your inputs, but you can also utilize a worksheet or edit this field. Depending on the type of loan, an editable field for upfront MIP, Guarantee Fee, or Funding Fee will appear. You can choose to Finance this fee and add it to the loan amount by clicking this checkbox:

    

5. Enter all Closing Costs and applicable Credits for the loan scenario.

   1. You can utilize a worksheet to populate both closing costs and credits. Closing Cost worksheets can be saved for future use.

6. Enter any prepaid and escrow funds. 
7. The available cash before debts will be calculated at the bottom of the page. Click Next.

You will now be able to apply debts and obligations to the available cash in-hand. Click here to learn what's inside the Debt Consolidation Refinance Report. 

Making Edits to the Report

To make edits to either the existing or proposed loan details, click Edit in the top right corner of the page. 

From here, you can make edits to the scenario's debts and obligations, edit client information, existing property or loan information, and proposed loan information.

Adding Debts

To add additional debts to your Debt Consolidation report, follow the steps below:

To share the completed report, click Share. A dropdown menu will appear.

• Click Download to download the report as a PDF.
• Click Send a link via email with an optional video recording (not available for some users depending on their company permission settings).
• Click Host a meeting to virtually meet to discuss the report with your client.
• Click Record a Video to provide your client with a clear walkthrough of the report along with your own insights and context.

To learn more about sharing your report, click here. 

Have questions or want to learn more? Submit a ticket or call us today!