Refinance Your Mortgage
Mortgage Refinance means taking a new loan with different terms and conditions. You may want to do this to reduce the payment or shorten the time period. Additionally, you can get a cash-back from the home equity you’ve collected so far.Maybe you have high interest rates that don’t seem very fair. Or maybe the state of the economy changed from the moment you took the loan. Or maybe you want to convert your adjustable-rate mortgage into a fixed one. In these cases, refinancing can help to decrease costs and liberate you from the mortgage burden sooner.
Make sure to contact our team to find out if refinancing works for you. If you’re not ready to give us a call yet, please use our online mortgage refinance calculator tool to identify savings you might have after your mortgage refinance or check below for FAQs. Making an uninformed decision may result in increased interest rates rather than the opposite.
Should You Refinance Mortgage?
All this sounds great, but let’s talk if you you really need to refinance mortgage. Before you dive deep into the process, think about the actual benefit you’re expecting from it. Some of most popular reasons for refinancing are:
Frequently Asked Questions
What does “equity” mean? And why does it matter for refinancing?
Equity is the assessed value of your property minus the unpaid amount of your loan.
Equity can be used in different ways. A considerable amount of home equity means you can take a bigger sum of money during cash-out refinancing. It may also help you get better interest rate which means your monthly payments will be lower.
A good amount of equity may also help you avoid private mortgage insurance (PMI). This is a monthly fee included in loans that requires less than 20% down payment.
How much does refinancing cost?
Refinancing makes sense and doesn’t cost much if replaces a second mortgage. In this case, refinancing will reduce the costs connected to a separate mortgage. However, if you want to refinance to pay a credit debt or get cash, think again. This can result in higher interest rates and a bigger monthly payment. This can also prolong the term.
What documents do I need to start refinancing?
You will need the following documents to apply for refinancing:
Proof of income - Generally, a pay stub for the last 30 days of employment is enough.
Copy of homeowners insurance - You need to show that you have appropriate coverage on the house you wish to refinance.
Copies of your W-2 forms - This document will reference your income and employment information.
Copies of asset information - This documents include statements of savings, investment records for mutual funds/stocks, statements for 401(k) accounts, as well as the statements for the accounts in question meant for closing process.
Copy of title insurance - It shows your taxes, names on the title as well as a full legal description of the house in question.
You may also need your Social Security number for verifying your credit history.
How many times can I refinance mortgage?
Every state has a set frequency of refinancing you can do. Most of those limitations are designed to secure homeowners from getting into bigger debts. This is why it’s important to understand if refinancing serves your purpose and is a necessary choice.
Always check if your lender doesn’t have prepayment penalties. Find out if you have equity that is enough for refinancing. The current interest rates should not be higher than they were during your initial loan. Think if refinancing is absolutely necessary or not.
If you can’t decide on your own, make sure to talk to experts. This will help you look at the situation from a professional's perspective.