Menu
Mortgage refinance loan
What is a mortgage refinance loan?
An individual or business refinances their existing loan with a new one that typically has better terms. Refinancing is also known as refinancing. As a result of refinancing, borrowers may be able to lower interest rates, lower monthly payments, or extend the repayment period, which can help them save money or improve their financial circumstances.
Key features of
Mortgage Refinance
loans include:
Lower Interest Rate
In order to get a lower interest rate on the new loan, most homeowners refinance their mortgages. Refinancing the home can reduce monthly mortgage payments and save homeowners money over the life of the loan if interest rates have decreased since they originally obtained the mortgage.
Lower Monthly Payments
Refinancing can extend the loan term, which can lead to lower monthly mortgage payments. This can make homeownership more affordable and provide relief from high monthly costs.
Change in Loan Type
It is possible for homeowners to lock in a predictable monthly payment and a stable interest rate by switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage (FRM). When interest rates decrease or if they intend to sell the home before a rate adjustment, they might switch from an FRM to an ARM.
Cash-Out Refinance
When a homeowner refinances into a cash-out refinance, they borrow more than the outstanding balance on their existing mortgage and receive the excess funds as cash. This money can be used for home improvements, debt consolidation, or other reasons.
Shorten Loan Term
To pay off their mortgage faster and build equity faster, some homeowners refinance their mortgages to shorten the loan term (e.g., moving from a 30-year to a 15-year mortgage).
Remove Private Mortgage
Insurance (PMI)
Homeowners may refinance to eliminate private mortgage insurance if their home equity has increased to the point where they no longer need it.
FAQ
How do I apply for a mortgage with your company?
You can start the application process on our website by filling out the form online, setting up a loan consultation appointment, or calling us on the phone. There is not an application fee.
How much can I afford to borrow?
Your borrowing capacity depends on your income, expenses, creditworthiness, and the type of loan you’re applying for. We’ll work with you to find a loan amount that works with your budget and your comfort level.
How do I lock in an interest rate?
We will typically work through this together. You will want to lock in once you are under contract on your home and your loan has been uploaded to the lender.
Can I make extra payments or pay off my mortgage early?
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Can I make extra payments or pay off my mortgage early?
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
What are closing costs?
Closing costs include fees for services such as title company costs, setting up your escrow account (property taxes and insurance), origination fees from lender for underwriting, etc. We typically have the lender pay our origination fee to help keep your closing costs lower.
What types of home loans do you offer?
We offer a range of home loan options, including Conventional, FHA, VA, USDA, Jumbo, Bank Statement, Asset Qualifier, Refinance, Reverse Mortgage, and so many others. Each loan type has unique features to suit different financial situations. Let our expertise guide you to find the one that is right for you.
How does the mortgage application process work?
Loan Approval: You receive final approval from the lender (clear to close).
Closing: The final paperwork is signed by all parties and the loan is then funded and recorded.
What is a mortgage broker and what do you do?
As mortgage brokers we have access to 60+ wholesale lenders providing you with multiple options for all your home buying needs with lower rates and exceptional service. At Loans By Vicky, we stay in constant contact with you throughout the entire process. We are still here for you even after you close. We love making friends one mortgage at a time!
Get Pre-Approved quickly for your Mortgage Refinance loan through our app!
- Address: 8325 North Cedar Drive, Eagle Mountain, UT 84005
- Phone: 385-220-5458
Follow Me
Looking for mortgage advice and updates on the housing market? Connect with me on social media for the latest insights and personalized assistance. 🌟
Copyright ©2023 | Loans by Vicky. All Rights Reserved. | Licensed in Arkansas (131315), Idaho (MLO-2082035468), Florida (LO99942), Georgia (2035468), Utah (8960153)
