There are many possible benefits to refinancing your home mortgage. You may have heard from friends or neighbors who have already refinanced about some of the various advantages connected to refinancing your mortgage. For instance, refinancing can lead to a lower mortgage payment, a quicker timeline for paying off your mortgage, a lower interest rate, among other benefits. If this is your first time refinancing, you may be unsure of what to expect, so we’ve outlined the basics.
Will A Refinance Benefit You?
Benefits from refinancing will be specific to your situation. Refinancing is a process that allows you to replace your current mortgage with a new mortgage. The result is a new interest rate, a new timeline, and an adjusted mortgage payment. In certain instances, the different loan amount that you are eligible for will be higher than the amount you owe, and there’s a possibility you could receive cash out in the process. Speaking directly with a mortgage professional, like one of JVM’s, is one of the best ways to identify the benefits of refinancing your mortgage.
How Do You Start?
The process for refinancing your mortgage is not unlike applying for a home mortgage. However, lenders will request additional information concerning your existing mortgage and the original purchase. Typically you will need to present tax returns, bank statements, and other relevant financial documents.
At the start, you may only need to complete a loan application and allow your credit report to be pulled. Mortgage professionals can assess from this first step if you qualify for a refinance and estimate the loan terms. Usually, this part of the process is completed quickly.
The closing of your refinance will generally take place in a title agency or a similar setting. The title or escrow agent will assist during the process of using the new mortgage funds to pay off the current mortgage and to finish other necessary steps on your behalf. While there are a few steps for you to complete to refinance your mortgage, it is generally easy when working with a mortgage expert. You can ask for more information about the basics of refinancing when you speak with a licensed expert consultant.