Are you considering a home mortgage refinance? Perhaps you’re looking to tap into your equity so you can make improvements to your property. Or maybe you’re wanting to change your loan term or rate.
Refinancing your mortgage allows you to replace your existing loan with a new one. Under the right circumstances, refinancing can be financially beneficial and allow you to pay off debt, increase your home’s value, and/or build personal wealth.
If you’ve never gone through the process before, you probably have questions. This FAQ will provide you with some insight and information that will be beneficial to your endeavors.
Home Refinance – Frequently Asked Questions
Being a homeowner is a wonderful experience, but it also comes with increased financial responsibility. Perhaps you were comfortable with your mortgage payment when you took out your loan, but now you’ve suddenly run into unexpected costs like medical bills or home repairs. Or maybe rates have dropped since you obtained your mortgage.
Refinancing allows you to replace your existing loan with a new one. This may sound like a complicated process, but it’s really quite simple. And our experts are here to walk you through it every step of the way.
Here are some answers to common home refinance questions:
Q: When should I refinance?
A: You should refinance when it makes sense for you to do so. Some of the reasons that people refinance are to switch to a lower rate, decrease their monthly payment amount, shorten the length of their loan, and take out cash to pay for expenses.
Q: Are there fees?
A: Yes, just like when you took out your first loan, you will have to pay additional fees if you decide to refinance. These include lender fees, title fees, credit report fees, taxes, insurance, and more.
Q: Will I need to have my home appraised?
A: This is a great question for your lender. Most of the time, yes, an appraisal is required. But it all depends on the circumstances. If you’re concerned about this, you’ll want to talk to your lender before you start the process.
Q: Can I refinance if I have bad credit:
A: There are programs that allow borrowers with low credit scores to refinance their loans. Talk to your lender to see what they recommend.
Q: Can refinancing give me access to cash?
A: If you have enough equity in your home, yes, it’s possible. You can tap into your equity in exchange for cash.
Chat with a Mortgage Expert
For more information on the home mortgage refinance process, please contact our office. One of our experts will be happy to assist you and provide you with the additional information you’re seeking.