Refinancing? We Can Save You Money.

There are generally 4 reasons most people choose to refinance:

1. Lower Interest Rates and Payments
It’s really simple math. If you want to lower your monthly payment, you need to lower the interest rate on your loan. To see a dramatic decrease in your monthly payment, you could look into switching from a fixed to an adjustable rate loan, or extending the terms of your current loan.

2. Build Equity
Sometimes Buyers choose to refinance to a shorter term. Payments may stay the same, or might even increase, but paying interest over a shorter time period will build equity faster. This could potentially save thousands of dollars in interest. In addition, the loan gets paid off sooner!

3. Cash for Equity
Whatever equity you may have, either from mortgage premium payments or from upturns in the market, both can usually be turned into cash. Mortgage interest rates are typically less than the interest rates on other types of loans, and also have the added benefit of potential tax deductions at the end of the year.

4. Debt Consolidation
Owners with considerable second mortgagees, credit card debt, or auto loans can refinance to combine that debt into a new mortgage.  Mortgage interest rates are usually much lower than other consumer loans, so savings can be substantial.  Also, interest on a mortgage is usually tax deductible. This isn’t likely on credit cards and car loans.

Loan Origination Fee / Points:  This is the fee from your lender for making the loan. It’s usually listed as a separate line item or as a percentage of the amount of the loan. If you hear the term “points”, know that one percent equals one point.

Application Fee: This is the fee you’ll pay a to have your application considered. If your loan application isn’t accepted, this fee will typically be forfeited.

Appraisal Fee: Even if you recently had an appraisal, your lender will want to order a new one. They need to determine the current market value for your home in order to support the loan amount.

Credit Report Fee: Your lender will want a report on your current credit standing. Even if you’ve never had a late mortgage payment, that doesn’t mean you will automatically qualify to refinance.

Recording Fees and Taxes: These are the costs the county charges to register your property. The deed needs to be updated and the new mortgage and lender need to be recorded.

Title Search/Title Insurance: Even though you had a clean title when you got the property, the lender will want their own proof of this as well. They want to verify you still own the property and of any possible liens.

Closing Fees: This is the cost the title company or attorney charges to conduct the closing. Your lender might advise you who to choose, but the decision is ultimately up to you. We highly recommend looking at the Google reviews of each potential company before making a choice, calling to get quotes, and asking questions about their experience and process.

These are the most likely fees you will find when you decide to refinance your property. There may be others such as wire transfer fees, discount points, re-conveyance fees, etc. These type of fees can typically be negotiated. Refinances are as different and individual as the people who apply for them!