Is this your first time considering a mortgage refinance? Or have you undertaken the process in the past? Either way, it pays to be educated. Check out our helpful refinance FAQ.
Q: Should I refinance?
A: The answer depends on your specific situation. You need to consider how long you plan on staying in your home and whether it will be long enough to cover the closing costs associated with refinancing. When you have a moment, click here to crunch the numbers with our refinance calculator.
Q: How much can I save if I refinance?
A: Every situation is different, but if your current interest rate is higher than what is available on the market, it probably makes sense to refinance. To determine just how much you could save, check out our refinance calculator. Or connect with one of our licensed loan officers.
Q: What if I have a second mortgage on my home? Can I still refinance?
A: Yes! Typically, any second mortgage is paid off through the refinance. Both loans are consolidated into one new mortgage, and you make one payment each month. If you want to keep your second mortgage, your lender for this loan must agree to only refinance your first loan (through a process called “subordination”). The lender typically charges a fee for this service.
Q: Am I allowed to refinance if my property value is less than what I owe?
A: Even if the value of your home is less than what you owe, you still have refinancing options. Contact one of our loan officers to learn if you qualify.
Q: What are the costs associated with refinancing?
A: Much like a purchase loan, when you close on a mortgage refinance you pay standard fees for your credit report, title, escrow, notary, and recording. Also, expect pro-rated costs for items such as property taxes, interest, and homeowners insurance. If you have enough equity, these fees may be added to your new loan.
Q: What type of documentation do I need for a refinance?
A: The required documents are similar to when you purchased your home. You provide paystubs, W-2 forms, bank statements, and asset and debt information. One notable difference with a refinance: You need your most recent mortgage statement and proof of homeowners insurance.
Q: Can I refinance with bad credit?
A: Many consumers have suffered financial setbacks at one time or another. We are proud to offer refinancing options—including government-backed loans—for homeowners with a wide range of credit scores. Please contact us to learn more.
Q: Is it true that you should only refinance if you can lower your rate at least 0.5%?
A: Your specific situation and plans should be considered. Many homeowners refinance to a slightly higher rate so they can switch from the uncertainty of an adjustable-rate loan to the predictable payments of a fixed one. Contact us to review your current finances and refinancing goals.
Q: How long is the refinance process?
A: Most refinances close in approximately 30 days. Our goal is a smooth and simple process for every applicant. To keep your application moving forward, we ask that you do your part by delivering requested documentation in a timely fashion.
Q: What happens at the loan closing?
A: Depending on your state, you may be able to electronically sign the required paperwork from the comforts of your home. Other common closing locations are a title insurance company’s office or an attorney’s office. During closing, you review and sign documents and pay closing costs (unless you are rolling them into the new loan).