Should I refinance?
To determine whether or not it is a good idea for you to refinance, you should look at your specific situation and your motivation for refinancing. The most common reasons to refinance are to reduce your rate and/or payment, convert from an adjustable to a fixed rate, or pull cash out of your equity to consolidate debt or improve your home. If you are converting an adjustable rate into a fixed rate, your rate and payment may increase - but you’ll get peace of mind knowing that your rate is locked in and will never increase again. Your Loan Officer can help you determine whether or not refinancing makes sense for you.
How much can I save if I refinance?
Every situation is different. It depends on what your current interest rate is and what your motivation is for refinancing. If your rate is higher than what is currently available in the market, it probably makes sense to refinance. To get an idea what you could save by refinancing, check out our calculators and enter the numbers specific to your situation. Or call one of our licensed Loan Officers for expert advice.
What are the costs associated with refinancing?
Fees associated with refinancing vary from lender to lender but there are standard fees that are typical across the board. These fees include third-party fees such as credit report, title, escrow, notary, and recording fees. Other fees include the appraisal fee and lender fees such as those for processing and underwriting. Aside from the closing fees, there will be prorated pre-paid costs for items such as property taxes, interest, and insurance such as homeowners, flood (if applicable), and windstorm (if applicable). If you have enough equity in your home, you can add all fees and pre-paid items into your new loan.
What type of documentation do I need for refinance?
Standard documentation collected for a refinance transaction includes information regarding your income such as paystubs covering the most recent 30 days, two (2) years of personal and business tax returns (if applicable), and W-2s for the last two years. Asset information such as bank or mutual fund/stock statements, IRA statements, and 401K statements (all covering the last 60 days), plus current loan information such as your most recent mortgage statement and homeowners insurance declarations page are also typical requests.
How long is the refinance process?
Most refinance transactions close about 45 days after the application is completed. As long as you do your part to deliver the documentation we need in a timely manner, we should be able to close your loan within that timeframe.