Refinance 101

The purpose of this page is to demystify the refinancing process, which is not terribly complex. In fact, the refinancing process bears a strong resemblance to the process of applying for a first home mortgage rate. So take a moment to pat yourself on the back. As you have already been through the ordeal once, it is sure to be easier the second time around.

Of course, refinancing is not an altogether pleasant process. First of all, it will cost you some money. There are numerous fees associated with refinancing. In most cases, paying those fees will be worth it because of the savings that will result from having a new home mortgage rate.

It’s also worth noting that many lenders now offer refinance packages that allow you to roll the refinancing costs into the principal of your new loan. That way, you won’t require as much money upfront as you otherwise would have.

It’s always best to give your present lender the first shot at refinancing your home mortgage rate. Since the market competition can be so stiff, your lender might just offer you a special deal as an incentive to stay with them.

Even if there is a monetary incentive, because your paperwork has already been processed one time, your lender might be able to streamline the application process. A helpful measure, the shortened steps can certainly save you a lot of time and hassle.

Of course, there are reasons other than a lowered interest rate to refinance your mortgage. You can also shorten the repayment term if you want to repay the loan sooner, or borrow money against your equity in the house.