Refinancing can be helpful if rates are lower, to reduce the number of years left on your loan term, or to access cash through a cash-out mortgage.
Thinking about refinancing your home? Here’s what to do:
1. First, think about why you want to refinance your mortgage.
It’s not uncommon for homeowners to refinance their home mortgage. A savvy homeowner will take advantage when mortgage rates dip or use the equity in their home to access equity through a cash-out refinance to consolidate debt, make a home improvement or reinvest.
Here are reasons that many homeowners choose to refinance:
- Your current mortgage has rates that are above the current market rates
- You want to transition from an adjustable-rate loan to a fixed-rate loan
- You are hoping to lower monthly payments
- You have equity in your home that you want to access as cash
2. Complete the home loan application.
Now that you’ve decided a refinance makes sense, your loan advisor will help you through the remaining steps of the loan process. You’ll be asked for some additional information and documentation that the lender will use to approve your application thoroughly. If you are looking for a Cash Out Refinance option, the application process will help determine the amount of cash you can access. Your loan advisor will also coordinate appraisals and other steps involved in the underwriting process.
3. Close the loan.
Your loan advisor will help you navigate the entire home refinancing process from start to finish. As the closing date approaches, your loan advisor will work with everyone involved to schedule the closing appointment. Before the closing date, your loan advisor will contact you to review the final loan details.