Mortgage Refinance

Mortgage Refinance FAQ

• How do you know if a mortgage refinance is worth it?

  Before you refinance your mortgage, it's a good idea to run the numbers and make sure the gains will be worth the closing costs and the time spent doing the paperwork. 

  Here are a few scenarios when a mortgage refinance might make sense for you:

  • If you can lower your interest rate because your finances have improved or market rates have dropped
  • If the value of your home has increased, you may be able to access equity to use for home improvements, debt consolidation, tuition, weddings, and more
  • If you want to switch from an adjustable-rate mortgage (ARM) loan to a fixed-rate mortgage
  • If you want to change from one adjustable-rate loan to another to lower your monthly payment
  • If you want to build equity faster and pay off your mortgage faster by shortening the term of your loan to 15 or 20 years
  • If you want to lower your monthly payment by extending your loan term from 15 or 20 years to 30 years.

   

• What is the mortgage refinance process?

  Refinancing your mortgage will be easier than getting your original mortgage simply because you've been through the mortgage process before! You'll need many of the same documents this time, too.

  First, choose your new loan type based on:

  • Your income
  • How much you still owe on your mortgage
  • How much you cash you might have to put down or how much cash you want to take out
  • How long you're planning to stay in your home
  • Whether you want a higher or lower payment
  • What mortgage term best suits your needs

  Next, apply online and get pre-qualified for your new mortgage with a likely new rate. If approved for pre-qualification, we move to the next steps:

  • We'll process your application, verify all your documents, and request proof of income.
  • We need to order an appraisal of your home and a title search to check for any liens, plus check your flood certification if needed.
  • When all this is done, we complete the underwriting process to finalize your loan approval.
  • Then we close on your new mortgage!

   

• What documents are needed for a mortgage refinance?

  The documents you need may vary depending on the type of refinance you're doing but here's our handy checklist so you can prepare:

  • Your current residence address, or addresses, for the past two years
  • Social security numbers for all borrowers
  • Your employment history for the past two years – you'll need your employer(s) name, address, and phone number
  • Income information for all borrowers – you'll be asked to include salary, overtime, bonuses, commissions, interest/dividend, retirement income, and any other regular source of income
  • The year you purchased the property being refinanced, its original cost, current loan balance, and payment amount
  • Bank and brokerage account information, including the institution name and current balances
  • If you own any real estate (other than the property you're refinancing), we'll have some basic questions including: address, current market value, the amount you owe, the amount of rental income you receive (if any), and what your monthly payment is
  • Information about your current debts – we'll ask for the name of the creditor, the account number, the current balance owing and the amount of your monthly payment