Meet The Genius Suggestion Engine Transforming Mortgage Refinance

Posted by Thierry Godard on April 05, 2016

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We don’t like to boast, but we couldn’t help getting a little bit excited about our latest product feature. We’re calling it the suggestion engine, and it’s a recent addition to our quote tool. If you haven’t already, be sure check your rate and stay tuned; the suggestion engine is just one way we’re aiming to revolutionize mortgage refinance.

Normally a mortgage refinance is a laborious and time consuming process, that involves tons of back and forth with banks, and shoddy napkin math. With Lenda’s suggestion engine you can see in real-time exactly what you need to do get the best rate possible.

How? We leverage our own calculations and knowledge of mortgage rates, and combine them with your mortgage details, established home equity, and how much cash you can afford to bring to the closing. Traditionally this process could take several hours, or up to several weeks depending on the lender, but with Lenda we’re able to share suggestions instantly while you’re actually thinking about it.

No back and forth, no time wasted, no annoying phone calls. Just the information you need to see if you can save thousands of dollars on your home loan refinance. Sounds too good to be true, right? Well, don’t take our word for it, take a behind the scenes look at how Lenda’s suggestion engine works.

See Your Savings

This is what we’re all here for- the savings. By filling out the terms on your current loan, Lenda’s suggestion engine can show you how much you will save on your new, refinanced mortgage in real time. No need to wait, or risk fudging the math yourself- see exactly what you’ll save today before you go any further. Why can’t everything be this simple?

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Remove Escrow (or Impound)

An easy way to reduce your monthly mortgage payments with a refinance is to remove an escrow (impound) account from your monthly payments. Typically an escrow, or impound account, is setup by your mortgage lender to cover expenses like property taxes and insurance. The benefit of having an escrow account is that it splits big tax and insurance bills into easy to digest payments.

The suggestion engine allows you to see what your monthly payments would be with, and without an  escrow account. It’s a small change that could help you save big every month, especially if you plan on paying taxes, and homeowners insurance yourself out of a high yield interest , or investment account.

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Check Credit Score

Your credit score is the primary method lenders use to evaluate you as a borrower. If you don’t have the most up to date credit information, you could be skewing the numbers necessary to make the smartest refinance decision.

Make sure the credit score you’re using is the most up to date, so that you can get the most accurate rate possible. To get the lowest rate possible make sure you do everything you can to increase your credit score.

Max Cash Out Suggestion

Would you like to cash out the maximum without it affecting your mortgage rate? The amount of money you can receive on a cash out mortgage refinance depends on factors: your credit score, the current value of your home minus the total equity created, and the maximum loan to value for the loan. By updating your cash out amount, and other factors listed above you can see exactly how much you can receive at closing.

High Balance Threshold Suggestion

Your loan pricing and interest rate can improve significantly if you bring cash to close, or make a few more payments on your mortgage to get below the high balance loan threshold. By reducing the amount of your loan above your high balance threshold you can qualify for a lower rate. You can  see in real time how reducing your current mortgage balance will impact your interest rate with the suggestion engine high balance threshold.

Loan to Value and Lender Paid Mortgage Insurance Threshold Suggestion

This suggestion feature lets you see exactly how changing the Loan To Value (LTV) Threshold will impact your payment and interest rate. Typically if you have an LTV over 80% you have to pay mortgage insurance. However, with Lenda we can cover your mortgage insurance, helping you save money every month. You can lower your loan to value by making additional payments on your current mortgage, or by bringing cash to closing to get the best interest rate possible.

Have fun playing around with suggestion engine, and if you really like some of the features, or would like to see more, be sure to let us know!

See My Rates >> 

 

Topics: Refinancing 101, Company Announcements, FinTech