How to Refinance with HSBC
International bank HSBC offers two types of mortgage refinance options for their customers and noncustomers alike: a full-documentation refinance and a streamlined version. Both versions allow homeowners to transform their current mortgage loan into one with lower interest rates. These lower rates equal lower mortgage payments, sometimes by $150 or more each month.
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Things You'll Need
- Mortgage statement
- Credit card statements
- Student, auto and other loan statements
- Two most recent paychecks
- Two most recent federal income tax returns
Instructions
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Call HSBC at the number on your current mortgage statement if you are an existing client of the bank. If you hold a mortgage with a different bank or lender, visit HSBC's website to begin the refinance process.
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Determine whether you qualify for HSBC's streamlined mortgage refinance program. This program requires less paperwork than does a traditional refinance. You might qualify if you hold a VA or FHA loan that has a higher-than-market-value interest rate. If you do qualify, tell an HSBC lender that this is the refinance program for which you'd like to apply.
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If you don't qualify for the streamlined program, mail or fax an HSBC loan officer the paperwork that proves the level of your gross monthly income and your monthly debts. This paperwork should include your last 2 years' worth of federal income tax returns, copies of your two most recent paychecks and copies of your most recent credit-card and other loan statements.
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Give an HSBC lender your permission to order a credit report on you and send an appraiser to determine the current value of your home. You'll need a high enough credit score--usually 720 or above--to qualify for the best interest rates on your refinanced loan. You'll also need your house to appraise at a high-enough value to make sure that you have enough equity in it. If your house has dropped in value far enough, lowering your level of equity, you might not qualify for a mortgage refinance through HSBC.
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Agree on a closing date for your refinance if your financial situation, credit score and home value warrants an approval from HSBC. Sign any papers that HSBC sends to you that finalize your refinance.
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Tips & Warnings
Make sure the new interest rate on your HSBC refinance will be low enough to justify the cost of refinancing your mortgage loan. A refinance can cost $4,000 or more, money that is usually rolled into your loan payments.
