Overview
Thinking about refinancing your home mortgage? For many people, refinancing makes sense. It’s a great way to help you get closer to goals, whatever those happen to be.
Step #1
Apply for a new mortgage for your home.
Step #2
Use the funds from your new mortgage to pay off your old loan.
Step #3
Pay down the new loan each month.
We are here to help you
with your refinancing.
How Do You Refinance Your Home?
Refinancing your home is similar to applying for a regular mortgage. You start by finding a lender and getting pre-approved for the new mortgage. A pre-approval simply means the lender has reviewed the potential buyer’s credit score and taken steps to verify the documentation to approve a specific loan amount. Final loan approval occurs when the buyer has an appraisal done and the loan is applied to a property. A pre-approval is not a commitment from the lender to provide the loan, but it is an important step that helps prepare the buyer and lender for their next steps in the process. You’ll need provide the lender with the proper documentation they’ll need to secure the loan. This documentation includes things like current assets, debt and income.
Once the lender approves and gives you the loan, your old mortgage is paid off and you begin paying down the new one. If you had chosen to withdraw any cash based on your home equity, that cash gets sent to you.
Are You Ready to Refinance Your Home?
Our loan office has helped countless people refinance their homes and get closer to their financial goals. It’s rewarding for us, as we get to see the positive impact it can have on someone’s life. Have questions or need more info? Contact us today! We’d love to sit down for a few minutes for a free consultation on which type of mortgage we recommend.
Some Reasons Why People Refi
Debt Management
Mortgages usually have fairly low interest rates. Someone with a lot of higher interest debt may choose to refinance their home and apply the cash they receive towards paying off credit cards.
Remove Mortgage Insurance Premium (MIP)
MIP is very similar to Private Mortgage Insurance (PMI), but is only applicable to FHA-backed loans that are taken out with down payments of less than 20%. Many people with FHA loans later choose to refinance into a private mortgage. If you refinance and have enough equity vs. the mortgage, you can get rid of this fee.
Pay Off Your Loan Faster
Some people decide they want to pay off their home more quickly. You can refinance and drop the terms of your loan, for example going from a 30-year loan to just 20 years. This may increase your monthly payment, but save you thousands of dollars in the long term.
Lower Your Monthly Payment
Have a lot of equity in the home but your payments are too high? You can choose to refinance your home to lower the monthly payments. Just keep in mind this usually means extending the length of your loan, so it will take longer to fully own your home.
Our team of experts
is here for you.
Request a Quote
Free consultation from a mortgage expert.
Get Pre-Qualified
Be more attractive to sellers as pre-qualified.
Speak to a Loan Officer
Here to help you through the loan process.
Mortgage Calculator
See payment breakdown over different scenarios.