At First American Financial Mortgage Corp., we believe that understanding your ultimate goal is the key to choosing the right refinancing solution. Refinancing isn’t one-size-fits-all—every homeowner’s situation is unique. That’s why our team takes the time to match you with a loan program tailored to your needs and lifestyle. Call us today at 770-270-9044, and let us guide you through the process.

Here are some of the most common reasons homeowners choose to refinance:

Lowering Your Payments

If your priority is reducing your monthly mortgage payment, a low, fixed-rate loan may be the best choice. This option locks in today’s rates for the life of your loan, ensuring stability and peace of mind. Planning to stay in your home for years? A fixed rate is especially smart. If you expect to move in a few years, however, an adjustable-rate mortgage (ARM) with a lower initial rate could save you money in the short term.

Accessing Cash

Looking to fund a home renovation, cover tuition, or pay for a major life event? A cash-out refinance allows you to tap into your home’s equity and access the funds you need. In many cases, you can do this without significantly raising your monthly payment—particularly if you’ve held your current mortgage for a while or are paying a higher interest rate.

Consolidating Debt

If you’re juggling high-interest debts like credit cards, auto loans, or personal loans, refinancing may allow you to consolidate those payments into one lower-rate mortgage. This simplifies your finances and could save you thousands of dollars in interest.

Paying Off Your Mortgage Faster

Want to achieve financial freedom sooner? Refinancing into a shorter-term loan, such as a 15-year mortgage, can help you build equity more quickly and save significantly on interest. While monthly payments may increase, the long-term benefits often outweigh the costs—and in some cases, your payment could even stay the same or decrease.

At First American Financial Mortgage Corp., we know that no two borrowers are alike. Your goals, your lifestyle, and your financial situation are unique—and so is the loan program that’s right for you. That’s why our team takes the time to understand your needs and match you with the government-backed program that best supports your path to homeownership.

FHA Loans

Backed by the Federal Housing Administration (FHA), these loans are designed to help low- to moderate-income families who may not qualify for conventional financing. While the FHA does not lend directly, it provides insurance to lenders, protecting them in case of default.

Key Benefits of FHA Loans:

• Lower down payment requirements compared to conventional loans

• Competitive interest rates

• More flexible credit and income guidelines

• Certain closing costs can be financed

• FHA limits lender fees to keep costs reasonable

• Loans are assumable by qualified buyers

FHA loans are especially helpful for buyers with limited savings, making them a popular choice for first-time homeowners.

VA Loans

Guaranteed by the U.S. Department of Veterans Affairs (VA), these loans are available to eligible veterans, active-duty service members, and certain surviving spouses. VA loans are made through private lenders but backed by the VA, reducing risk for the lender and making homeownership more affordable for veterans.

Key Benefits of VA Loans:

• No down payment required in most cases

• Competitive interest rates

• No private mortgage insurance (PMI) required

• Right to prepay without penalty

• Loans are assumable by qualified buyers

• Access to VA counseling and assistance for borrowers in financial hardship

While VA loans don’t require mortgage insurance, a one-time funding fee is charged, which can be paid upfront or rolled into the loan. VA loans can be used to purchase, build, or improve a home—including energy-efficient upgrades.

USDA (Rural Housing) Loans

Backed by the U.S. Department of Agriculture, USDA loans are designed to help very low- to moderate-income families purchase homes in qualifying rural and suburban areas. These loans make it possible for families with limited resources to afford safe, decent housing.

Key Benefits of USDA Loans:

• No down payment required

• 30-year or 15-year fixed-rate options

• Closing costs and some fees can be rolled into the loan

• Renovation and repair costs may be financed

• Available for new manufactured homes (if program requirements are met)

A property doesn’t need to be farmland to qualify—it simply needs to be in an eligible rural area.

✅ Whether you’re a first-time buyer, a veteran, or a family in a rural community, these government loan programs are designed to expand access to homeownership.

When it’s time to get a mortgage, you may work with either a broker or a banker. While both can help you achieve the same goal—a new home—it’s helpful to understand how they differ and how each can benefit your application process.

Brokers

A broker is an independent company who works on behalf of the borrower and multiple lenders. Brokers act as a conduit between you and various lending sources, such as banks, credit unions, trust companies, mortgage corporations, institutional investors. A broker reviews your finances and helps identify lenders that best fit your needs. They then present your mortgage application to the most qualified lender and walk you through the process until closing.

Key Benefit: Brokers can compare multiple lenders and programs, giving you access to a broader and more competitive range of options.

Bankers

A banker works directly for a specific lending institution—like a bank, credit union, or mortgage company. They process and fund loans solely from that institution, offering programs that are unique to their lender. Bankers assist you from start to finish, helping you choose the right loan program and guiding you through the application and closing process. They are typically compensated by the lending institution, through a salary or commission.

Key Benefit: Bankers have in-depth knowledge of their institution’s products and processes, often allowing for a faster and more streamlined loan experience.

Before a lender decides to approve a mortgage, they need to know two things: whether you are able to repay the loan and whether you are willing to do so. To determine your ability, lenders examine your debt-to-income ratio. To assess your willingness, they review your credit score.

The most commonly used credit scores are called FICO scores, developed by Fair Isaac & Company, Inc. FICO scores range from 350 (high risk) to 850 (low risk). These scores are based solely on the information in your credit report—they do not consider income, age, race, or other personal characteristics. The goal of FICO scoring is to provide an objective assessment of a borrower’s reliability in repaying debt.

What Factors Affect Your Credit Score:

• Current debt levels

• Payment history, including any late payments

• Length of your credit history

• Credit mix and recent inquiries

Your score reflects both positive and negative information in your credit report. While late payments can lower your score, consistently paying bills on time can improve it over time.

To generate a credit score, a borrower must have at least six months of active credit history. This ensures there is enough information to produce an accurate score. If you don’t meet this requirement, you may need to establish or build your credit before applying for a mortgage.

✅ At First American Financial, we help you understand your credit profile and guide you toward the programs that match your financial situation, so you can confidently prepare for homeownership.

Many homebuyers qualify for mortgage programs but struggle with the standard down payment. At First American Financial Mortgage Corp., we understand this challenge and want to help you explore practical ways to fund your down payment. Here are some strategies:

1. Save Strategically

Cut unnecessary expenses and set aside funds specifically for your down payment. Consider automating your savings through payroll programs or bank accounts. Small changes—like moving to a more affordable home or taking a staycation—can help you build your savings faster.

2. Sell Items or Pick Up Extra Work

Declutter your home and sell items you no longer need. Multiple small sales can add up quickly. You might also consider a temporary second job or freelance work to boost your down payment fund.

3. Borrow from Retirement Accounts

Some retirement plans, such as a 401(k) or IRA, allow you to borrow or withdraw funds for a home purchase. Check with your plan administrator about repayment requirements, tax implications, and any penalties before proceeding.

4. Ask for Family Assistance

First-time buyers often receive support from family members. Parents or relatives may be willing to gift or lend funds to help you reach the milestone of homeownership.

5. Explore Housing Finance Agencies

Nonprofit and government housing agencies provide programs for moderate- and low-income buyers, sometimes offering down payment assistance, reduced interest rates, and other benefits. These programs aim to make homeownership accessible in targeted communities.

6. Consider Low- or No-Down-Payment Loans

FHA Loans – Backed by the Federal Housing Administration, FHA loans require as little as 3.5% down and allow some closing costs to be financed. These loans are ideal for low- to moderate-income buyers.

VA Loans – Guaranteed by the Department of Veterans Affairs, VA loans require no down payment, offer competitive rates, and reduce closing costs for eligible veterans and service members.

Piggyback Loans – These combine a first mortgage (usually 80% of the home price) with a second loan to cover a portion of the down payment, reducing the upfront amount you need.

Carry-Back Loans – Sometimes the seller finances part of the purchase price with a second mortgage, allowing the buyer to reduce their initial down payment. Interest rates on the seller-financed portion may be slightly higher.

No matter which method you choose, the reward of owning your own home is priceless. At First American Financial, we help you explore every option so you can find the right program and make homeownership a reality.

Every home purchase involves closing costs, which are fees associated with the services required to complete the sale. Typically, buyers are responsible for these costs, as outlined in the sales contract. In some cases, the seller may cover or share a portion of the fees depending on the agreement. Closing costs can be paid directly at closing or indirectly through the loan.

Many of a buyer’s closing costs are tied to obtaining the mortgage. At First American Financial Mortgage Corp., we leverage our expertise in mortgage lending to provide you with a clear, detailed estimate of all costs associated with your loan.

The Loan Estimate

Within three days of submitting your mortgage application, we will provide a Loan Estimate. This document includes:

• Estimated closing costs

• Taxes and insurance

• Projected interest rate

• Monthly payment

• Other important loan details

The Loan Estimate is not a loan approval but is an essential first step in understanding your potential costs. Our team will review the estimate with you, answer your questions, and highlight any items that may change slightly at closing.

Common Closing Costs

Loan-Related Costs:

• Loan origination fees

• Points (optional, to lower your interest rate)

• Appraisal fee

• Credit report fee

• Prepaid interest

• Escrow fees

Property Costs:

• Property taxes

• Transfer taxes and recording fees

Insurance Costs:

• Homeowners insurance

• Title insurance

• Flood or earthquake insurance (if applicable)

• Private mortgage insurance (PMI, if required)

Fixed-Rate Loans

A fixed-rate mortgage gives you peace of mind by keeping your monthly principal and interest payment the same for the entire life of the loan. While property taxes or homeowners insurance may change slightly over time, your mortgage payment will remain predictable and steady.

In the early years of a fixed-rate loan, most of your monthly payment goes toward interest. As time passes, more of your payment is applied toward the principal, steadily building equity in your home.

Many homeowners choose a fixed-rate loan to lock in a low interest rate—especially when rates are favorable. For those currently in an Adjustable-Rate Mortgage (ARM), refinancing into a fixed-rate loan offers greater stability and protection from rising payments.

Adjustable-Rate Mortgages (ARMs)

An Adjustable-Rate Mortgage (ARM) typically starts with a lower interest rate than a fixed-rate loan, making it an attractive option for some buyers. However, after an initial fixed period, the rate adjusts at set intervals (often every six months or annually), based on financial indexes.

Most ARMs come with caps to limit how much your interest rate or monthly payment can increase:

• Annual Cap – Limits how much the rate can rise in a single adjustment period (often 2%).

• Payment Cap – Ensures your payment doesn’t exceed a certain amount within a year.

• Lifetime Cap – Guarantees your interest rate can’t rise beyond a set maximum for the entire loan.

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Common ARM options include the 3/1 ARM or 5/1 ARM, where the rate is fixed for the first 3 or 5 years, then adjusts annually. These loans can be a smart choice for borrowers who plan to sell or refinance before the initial fixed period ends.

An ARM may be right for you if you want to take advantage of a very low starting rate and expect to move or refinance in the near future. However, ARMs carry risk if home values decline and refinancing or selling becomes difficult.

✅ At First American Financial, we’ll help you compare the stability of a fixed-rate loan with the flexibility of an ARM, so you can choose the option that best fits your long-term goals. Call us at 770-270-9044 to discuss or to lock in your rate today.

What is a Rate Lock?

A rate lock (also called a "commitment") is your lender’s promise to secure a specific interest rate and number of points for a set period of time during your loan process. This means that even if interest rates rise while your application is being finalized, your locked rate will remain protected.

Rate lock periods typically range from 15 to 60 days. Shorter lock periods usually come with lower rates, while longer lock periods—such as 60 days—offer more time but may come with a slightly higher rate or additional cost.

How to Save on Interest

Beyond choosing the right lock period, there are additional ways to secure a lower interest rate:

• Make a larger down payment – More equity upfront often means a better rate.

• Pay points – You can pay extra at closing to “buy down” your rate for the entire life of the loan.

• Long-term savings strategy – While paying points increases your upfront costs, it can save you money in the long run, especially if you plan to stay in your home and don’t refinance early.

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✅ At First American Financial, we’ll walk you through the best lock options and strategies to make sure you get the right rate at the right time, tailored to your financial goals.