Questions about Refinancing

1. Should I refinance my existing loan?

People refinance their existing loans for a number of reasons including obtaining a lower interest rate, to save on monthly payments and to change the term of the loan. People also choose to refinance if they want to switch from an adjustable rate to a fixed rate or to consolidate debt by refinancing for a higher loan amount and using the difference to pay off other debt. To see if it makes sense to refinance your loan, try our refinance calculator.

2. What costs are involved in refinancing?

We don’t charge application fees, appropriate closing costs will be rolled into the loan on a refinance. You may also choose to pay discount points if you want to buy down the interest rate. The only out of pocket investment will be on the appraisal fee, which is paid directly to the appraiser.

3. What is a cash-out option?

If you have enough equity in your property, you can refinance with a loan amount greater than your current mortgage and keep the difference! You can use the money for home improvement, debt consolidation, or whatever else you would like.

4. What is roll-in refinancing?

Rolling-in your loan costs is especially attractive when refinancing. By rolling-in your costs, you incur no expense and therefore have no “payback period”. The payback period is the time required to recoup the cost of your new loan through the monthly savings you get from the difference between your new lower payments and your old ones. For example, if your new loan’s payments are $100/month less than your old one, but you had to pay $1200 to refinance, you’d have a payback period of 12 months before you’d actually start saving. By rolling-in the cost of your refinance, your actual savings begin immediately. Rolling-in your costs is particularly appropriate if you’re planning to sell or refinance again in a few years because it will matter less than that the actual loan amount is higher because you will immediately be able to enjoy to the savings.

5. Do I need to get an appraisal when I refinance?

Yes, but if your mortgage is currently with the lender we are placing your loan thru the appraisal criteria might be different. Sometimes lenders waive appraisals depending on your overall profile. You can call your loan officer for details.

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