Thinking about refinancing? It’s always smart to check in on your finances and see if a refi could help you reach your goals. Whether you’re looking to switch from an adjustable to a fixed rate, tap into your home’s equity, or just lower your rate or loan term, refinancing can be a powerful tool. Not sure where to start? Our FAQ section has answers to the most common questions to help guide your next move.
That depends on your unique situation. If your current interest rate is higher than what’s available today, refinancing could lower your monthly payment and save you money over time. How much? It all comes down to the difference between your old rate and your new one. Want to see your potential savings? Contact us!
Is Refinancing Possible with a Second Mortgage on the Home?
Yes, refinancing is still possible if you have a second mortgage. In many cases, both loans can be combined into one new mortgage with a single monthly payment. If you prefer to keep your second mortgage as-is, we’ll work with your second lender to get what’s called a subordination agreement—which allows us to refinance your first mortgage without affecting the second. Just a heads-up, this process may involve a small fee.
How Much Does Refinancing Cost?
Refinancing does come with some costs, and they can vary depending on your lender and loan type. Standard expenses often include fees for things like the appraisal, title insurance, credit report, notary, and loan processing. You might also have prepaid costs like property taxes or homeowners insurance. If you want to lower your interest rate, you can pay points, each point is equal to 1% of your loan amount. The good news? If you have enough equity, many of these costs can be rolled into your loan so you won’t need to pay much (or anything) out of pocket.
Are There Any Documents Required for Refinancing?
Yes, refinancing usually requires some basic paperwork to verify your finances. Most lenders will ask for your W-2s from the past two years, your most recent pay stubs, and bank or investment account statements from the last couple of months. You’ll also need to provide a copy of your current mortgage statement and homeowner’s insurance policy. It’s all part of making sure the new loan is a good fit for you.
Is It Possible To Refinance With Bad Credit?
Yes, it’s still possible to refinance even if your credit isn’t perfect. Some loan programs are designed to help borrowers with lower credit scores, depending on the reason behind the credit challenges. Reach out to us and we’ll walk you through your options based on your unique situation.
How Long Does Refinancing Take?
On average, refinancing can take about 30 days once all required documents are submitted, but timing can vary depending on your situation. At Absolute, we work hard to make the process as smooth and efficient as possible, aiming to close faster than typical industry timelines whenever we can.
What Is The Loan Closing?
The loan closing is the final step where your refinance becomes official. You’ll sign all of the required documents, either at home or with a settlement agent, and pay any remaining closing costs (if necessary), usually by cashier’s check. Once everything is signed and submitted, your new loan is complete and ready to go.
Our Loan Officers are here to advise and guide you into making the most important financial decision of your life – buying or refinancing your home. With us you can sit back, relax, and let our professionals handle it. Check out all of our loan options available to see what suits your goals.
Are you ready to open the doors to your new home, make the right investment, or give yourself newfound freedom by refinancing? Absolute Home Mortgage is ready to guide you every step of the way. Get started with us by clicking the button below. Still have questions? Use the Contact form to the right.
