Talk to one of our mortgage experts to see if it is time to refinance your home.
What does it mean to Refinance?
You probably know this by now, but your home is an investment. Refinancing a mortgage can leverage that investment and allow you to get cash out of it through the refinancing process.
There are several reasons why someone might want to refinance their mortgage: they could be looking for more money from selling off the equity in their property or lower payments by extending the loan term at a higher interest rate. Let’s look closer into how refinancing works, so you know exactly what to expect.
Refinancing your home isn’t as scary as many people think – especially if there’s a good reason behind doing such things as making funds available. Refinancing your mortgage can be an intelligent decision if you’re looking to lower monthly payments and can be a great way to make the most of its equity. You can use cash-out refinance, which uses all or some of that equity for you. Refinancing could also be used as a tool in divorce cases where one partner must remove themselves from an existing mortgage loan and have their credit score restored before taking on another new mortgage loan with someone else again.
To begin the refinance, you’ll need your last two years of tax returns and an estimate of how much monthly income you will have after all debts are accounted for over that same period. Lenders can use this information to determine if they’re able to provide financing at current rates or not so that when it comes time to sign the paperwork, there won’t be any surprises waiting on either side! The refinancing process usually takes about 30-45 days.
Refinancing your home is a complicated process. There are many lenders out there, and each one has different rates, terms, availability requirements, and client satisfaction ratings. Don’t be afraid to shop around when refinancing—don’t just go with the lender who has been handling it for years. Branch out and do some research to identify the best lender for you! The last thing you want is to be tied down for another 5-10 years if better options are available!
To refinance your home, you may need an appraisal. This is done in place of a traditional mortgage inspection and will determine what options are available for borrowers seeking refinancing on their homes.
Your lender will verify the details of your home, like when you bought it. This includes an appraisal to determine its value. The refinance appraisal is a crucial part of the process because it helps lenders figure out what options are available for you and what your home is now worth.
Interest rates are constantly fluctuating, and you never know when they might change. Locking in a stable rate can help take some of the pressure off your shoulders by knowing that no matter what happens with interest rates over the next few weeks/months, this one will be locked in for as long as possible.
To protect yourself from an unexpected fluctuation in these ever-changing market dynamics—which is not at all unheard of nowadays—lock into a fixed rate. Doing so now could save you hundreds or even thousands of dollars in the long run!
Underwriting is a critical part of the mortgage process. It begins as soon as you submit your application and is where the decisions are made. At Integrity Mortgage, all of our underwriters are in-house, meaning you have a local individual reviewing your application. This allows us much more room to deal with unique situations.