Use this guide to find the right time to refinance your home, make changes to your mortgage, and save money in the long run.
Refinancing your mortgage can save you a lot of money, but know when to refinance and what terms to look for.
These experts will help you take that next step.
Get competitive rates from network of over 350 lenders…Read Review
J.G. Wentworth Home Lending
Enjoy long-term stability with range of fixed-rate term options...Read Review
Mortgage lender offering rates without requiring personally identifiable information...Read Review
Make your dream home a reality with a quick and easy home loan...Read Review
The Easy Loan Site
Receive offers quickly in a format that suits you...Read Review
Competitive and personalized fixed rate mortgages entirely online... Read Review
Find a simple mortgage that works for you at the touch of a button…Read More
Make the mortgage process simple with the largest online lender in the US...Read Review
Get a reliable source of income during your retirement with a reverse mortgage...Read Review
Get competitive rates from a vast network of lenders offering reverse mortgages...Read Review
If you’re interested in the housing market, you’ve probably heard about mortgage refinancing. For many, the draw is securing a lower interest rate or a maturity date that’s better for them.
Refinancing a loan means taking out a new refinance loan to pay off the previous one, with new terms that suit you. The best refinance companies are easy to find; shop around and examine different lenders, their rates, terms and loan types. It’s important to find the best company for your needs.
Refinancing is great for getting a handle on your finances, largely through securing a more manageable interest rate bringing down your payments and helping build equity, the value of your home minus the amount you owe, faster. By refinancing to a better interest rate and shorter payoff time, more of your monthly payment will go towards the principal, not the interest. There are costs, so decide if mortgage refinance is right for you by weighing the benefits against the costs.
Many borrowers opt for cash-out refinancing, where they take out a loan for a larger amount than what the house is worth and keep the difference, often to pay off other loans—such as credit cards—which have higher interest rates. Cash-out refinancing can be used for any expenses, not just other debt.
Great for comparing many loan options at a glance, Lendingtree is an online marketplace with no hidden fees and free credit scoring. It offers 15- to 30- year loans and has a network of over 350 lenders. Its website is easy to navigate and it's possible to see offers quickly and online. Lendingtree is ideal for busy mortgage shoppers who want to see several options at a glance.
JG Wentworth is a great choice for those needing their strong customer service and straightforward application. It offers primarily for those with good credit and is a leader in refinancing with its many options geared toward refinancing.
Get approved for 10 loans in under 10 seconds with this fast and clearly designed inquiry and confirmation process. The Easy Loan Site offers many options and personalized attention so each borrower can find the terms that meet their needs.
|Improve your terms and rates||Significant fees|
|Build equity by paying the principal loan||Best rates come with good credit|
|Can receive cash payment|
Mortgage refinance companies will base their rates on your credit rating and history. Check if your credit rating is high enough to negotiate a lower interest rate that will make refinancing worthwhile. If you are not getting quotes with rates you'd like, evaluate if now is the right time to refinance and work on getting a better quote down the line. Here’s how:
The best mortgage refinance lenders generally do not approve loans to people whos original home loans are in default. Lenders want to know that you will be able to make your monthly payments, and may require certain income standards, or for the loan to be no more than a percentage of your income.
Once you’re interested in mortgage refinancing, it’s important to examine the costs. You should be able to pay the closing costs, which can include appraisal fees, prepaid interest or points, title search fees, title insurance and loan application fees. You will also need to pay closing fees for the attorney who brokers the exchange. These fees can each run into the hundreds of dollars, so it’s important to be ready to pay them before beginning the refinance process.
You should have already built some equity in your home; the loan amount should be smaller than the value of the property, typically by about 80%.
If these terms and requirements fit your situation, you may be ready to begin the process of a refinanced home loan.
Step 1: Determine if refinancing is cost effective for you. It makes sense if you will make up the costs of the fees through the money you’re saving in your monthly payments and if your credit score is good. If the interest rates are low enough, you can save a lot.
Step 2: Compare the best mortgage refinance lenders, their rates and how long it will take you to pay of the loans they are offering you. Shop around for the right fit and apply to the one that suits you best.
Step 3: Prepare for closing. Bring your photo ID, the money you need for closing and any other documents your lender requests. You have a 3 day right of cancel, should you decide this loan is not right for you.
If you have some equity in your home and are looking for rates and terms that suit your current lifestyle more than your original mortgage loan terms do, refinance might be a great fit. It's important to take into account the costs and fees, as well as the new interest rate and maturity date. If the numbers add up, refinancing can help you wind up with cash in your wallet for other expenses or with lower monthly payments.