A happy woman high fives with her Golden Retriever dog because she just found out she should and can refinance her mortgage.

    What Is Refinancing?

    Refinancing is an excellent opportunity for homeowners to change their mortgage rate and terms to lower their interest rate, monthly payment, or cash out some of their property’s accumulated equity. 

    There are two types of refinances available for homeowners: 

    1. Rate/Term Refinance: A rate and term refinance is the refinancing of an existing mortgage to lower the interest rate or change the loan duration (from a 7/1 ARM to a 30-year fixed*, for example) without increasing the loan amount.
    2. Cash Out Refinance: A cash out refinance loan is the refinancing of an existing mortgage into a larger mortgage that changes the interest and the terms of the loan and advances money to the borrower. Borrowers obtain cash-out mortgages primarily for home-improvements and debt consolidations.

    Should You Refinance Your Mortgage?

    If a refinance makes economic sense for a homeowner, then they should consider refinancing. A general rule of thumb for homeowners is that a refinance makes financial sense for a homeowner if:

    1. They can recoup their closing costs in four years or less.
    2. If a refinance is offered at “no cost” to the borrower, then the recoup analysis is unnecessary. 

    If a no cost refinance lowers a homeowner’s interest rate by ¼% or more, then they should pursue it. JVM Lending offers and often encourages homeowners to refinance their mortgages with our team at no cost. 

    Borrowers also refinance existing mortgages to eliminate mortgage insurance if they believe they have enough equity in their property. JVM Lending is happy to help borrowers assess whether they have adequate equity to eliminate mortgage insurance.

    View mortgage rates for April 19, 2024

    How Does Refinancing Work?

    Refinancing with JVM Lending is fast, easy, and as seamless as possible. Most homeowners will start their refinance by working with one of JVM’s Client Advisors to discuss their goals and qualification parameters.

    Homeowners will then need to fill out an online loan application. Once their application is completed and submitted, they will work with a Mortgage Analyst to lock in their new interest rate. Homeowners should check with their lender to see if they need to obtain a new appraisal.

    Next, mortgage Analysts will prepare new loan disclosures for the homeowner and package their file for underwriting’s review. After underwriting gives the homeowner the “clear to close,” the homeowner will have successfully funded a new refinance loan!

    Get Started On Your Refinance

    Are you a homeowner wondering if you should refinance your mortgage? At JVM Lending, you’ll have a dedicated team of mortgage experts available to advise you through every step of the process. To learn more about how a mortgage refinance can lower your interest rate, improve the terms of your loan, or allow you to cash out some of your home’s equity, contact our team today! JVM’s expert Client Advisors are available 7 days a week by phone at (855) 855-4491 or by email at [email protected]

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